According to Lookonchain data, Tether minted an additional one billion USDT this morning, raising the total to the impressive figure of three billion dollars in less than a day. Market analysts suggest that this sudden increase of newly minted USDT aims to inject liquidity or support recent fluctuations in the price of Bitcoin.
However, this surge of USDT comes at a critical time. The GENIUS Act, recently passed in the House of Representatives by procedural vote, proposes a strict federal framework for stablecoins. It directly challenges Tether's long-criticized reserve practices by demanding full backing of reserves, transparent audits, and regulatory licenses.
These developments could be revolutionary for Tether, which controls approximately two-thirds of the global stablecoin market with 156 billion dollars in circulation. If Tether does not quickly adapt, the strict reserve standards and audit requirements of the GENIUS Act could force it to exit the U.S. market.
The law requires stablecoin issuers to maintain only cash or safe short-term assets and to publish audited financial statements. The combination of bitcoin, precious metals, and partial certifications from Tether, instead of complete audits, could make it impossible to continue operations in the U.S. under the law.
The legislation includes a grace period, three years according to the Senate version and 18 months according to the House proposal. This could give Tether time to adapt or launch an independent stablecoin that complies with U.S. standards.
