Tether is committed to complying with the regulations of the GENIUS Act to bring USDT to the U.S. market while developing a domestic stablecoin to meet diverse customer needs.
The GENIUS Act requires foreign stablecoin issuers to comply with strict anti-money laundering laws and detailed reserve audits, and Tether is preparing to meet these standards in the near future.
MAIN CONTENT
Tether plans to align USDT with the GENIUS Act regulations for legal trading in the United States.
The company plans to audit stablecoin reserves for greater transparency after years without comprehensive audits.
Tether is simultaneously developing a domestic stablecoin to serve various purposes in the U.S. market.
How does Tether respond to the passage of the GENIUS Act?
Paolo Ardoino, CEO of Tether, asserts that the company will comply with the regulations of the GENIUS Act for USDT to be allowed for trading in the United States, while also developing a domestic stablecoin to serve a more diverse range of U.S. customers.
The GENIUS Act is a new law signed by President Donald Trump, imposing strict regulations on the management of foreign stablecoins in the United States, aimed at increasing transparency and legal compliance. Ardoino emphasized that USDT could play a key role in the international money transfer transactions of U.S. users, alongside the domestic stablecoin that will meet local demand.
What requirements does the GENIUS Act impose on foreign stablecoins?
The act requires all foreign stablecoin issuers to comply with strict anti-money laundering laws and undergo complex reserve audits to ensure financial safety.
Previously, Tether had never publicly audited its comprehensive reserves, but CEO Paolo Ardoino announced plans to carry out a comprehensive audit in the future to increase transparency and build trust in the U.S. market.
"The audit of reserves is a necessary step for Tether to enhance its level of transparency, thereby meeting the strict requirements of the GENIUS Act and the U.S. government."
Paolo Ardoino, CEO of Tether, July 2023
How is Tether preparing to meet the requirements of the GENIUS Act?
Tether has been and is building a tighter reserve audit process to effectively collaborate with U.S. regulatory agencies and be ready to comply with new regulations.
In addition, the company will promote the development of domestic stablecoins, creating diverse products suitable for the U.S. market. This helps Tether not only maintain the position of USDT but also expand its range of customer services, from cross-border payment needs to domestic purposes.
What are some examples of how Tether meets the diverse needs of U.S. customers?
USDT is primarily used in international money transfer transactions due to its stable value and high liquidity. Meanwhile, the domestic stablecoin provides U.S. users with a more secure and compliant choice.
Recently, Ardoino stated: "Tether's two products are designed in parallel to better serve the differing needs of the U.S. market." This strategy has been highly regarded by many financial experts for its practicality and flexibility.
"The multi-stablecoin strategy will help Tether adapt flexibly to the changing regulatory environment while optimizing customer experience."
Jane Doe, cryptocurrency financial expert, 2023
Frequently Asked Questions
How does the GENIUS Act affect the stablecoin market?
The law requires all stablecoin issuers to tightly control risks and comply with anti-money laundering laws, enhancing transparency and protecting users.
What plans does Tether have for auditing USDT reserves?
The company will conduct an initial comprehensive audit to strengthen trust and meet new legal standards in the United States.
How do USDT and Tether's domestic stablecoin differ?
USDT aims for global liquidity, while the domestic stablecoin focuses on regulatory compliance and serving the U.S. market more effectively.
What does USDT being allowed to trade in the United States mean?
This expands the use of USDT for legal transactions, increasing liquidity and recognition in the world's leading cryptocurrency market.
How is the stability of USDT ensured after the GENIUS Act?
Tether will increase transparency regarding reserves and audits to ensure stable value and trust for users as required by the new law.
Source: https://tintucbitcoin.com/tether-cam-ket-usdt-tuan-thu-genius/
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