Circle, issuer of USDC, does not remain immutable in the face of Tether's expanded plans. Jeremy Allaire, CEO of Circle, celebrated the GENIUS Act as a validation of Circle's long-standing strategy to operate transparently under U.S. regulations.
Allaire emphasized that major organizations worldwide have come to trust Circle's model, based on rigorous reserve procedures and public audits. He noted that Circle has built trust with leading institutions, and that the GENIUS Act will strengthen it.
It is worth noting that the GENIUS Act is generally seen as a backing of Circle's strategy to promote USDC as the safest and fully regulated substitute for Tether.
Circle has largely complied with the law's requirements, which mandate that issuers back stablecoins with cash or short-term Treasury bonds and undergo annual audits.
The cryptocurrency bill could trigger a wave of audits, urging both domestic and foreign issuers to meet stricter standards. For Tether, launching a U.S.-specific stablecoin and ensuring that USDT meets these standards represents both a challenge and an opportunity. For Circle, the law is seen as a confirmation of its approach to prioritize compliance.
