Tether will issue USDT in the U.S. via the GENIUS Act’s foreign issuer pathway, leveraging its El Salvador base.
A separate, U.S.-compliant stablecoin is in development to serve domestic retail and institutional markets.
The new law enforces uniform standards, full reserves, audits, and transparency for both foreign and domestic issuers.
Tether will begin issuing its flagship stablecoin, USDT, in the United States under new federal regulations. The move follows the recent signing of the GENIUS Act by President Donald Trump, establishing a nationwide framework for stablecoin operations. In response, Tether confirmed it will operate through the law’s foreign issuer pathway while also developing a second token tailored specifically to U.S. regulatory demands.
USDT to Enter U.S. Market Through Foreign Issuer Pathway
Speaking at a White House event, Tether CEO Paolo Ardoino said the company will comply with the GENIUS Act’s foreign issuer framework. USDT, currently issued from El Salvador, qualifies for U.S. distribution under this provision. The law gives foreign issuers three years to meet key standards, including anti-money laundering compliance and full reserve audits.
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Tether has yet to complete a formal audit of its reserves. However, Ardoino stated that the company plans to meet all outlined requirements. He noted that Tether will aim to provide transparency and regulatory clarity under the GENIUS framework as part of its U.S. expansion plan.
New U.S.-Compliant Stablecoin Also in Progress
Alongside USDT’s entry into the U.S. market, Tether is building a separate stablecoin designed to follow domestic issuer rules. This second token will operate under stricter U.S. compliance conditions and will be legally distinct from USDT. The company intends to issue both coins in parallel to serve different user categories.
Ardoino explained that expatriates or international users may use USDT for cross-border payments and remittances. The new domestic stablecoin, however, is expected to serve retail and institutional users within U.S. borders. Development of this token began before the GENIUS Act was passed, but formal plans have now been confirmed.
GENIUS Act Creates Uniform Rules for All Issuers
The GENIUS Act introduces the first national regulatory structure for stablecoins in the United States. All issuers, both domestic and foreign, must maintain full reserve backing, undergo yearly audits, and provide asset disclosures. The law aims to improve trust, transparency, and financial safety in the growing stablecoin sector.
Circle, the issuer of USDC, stated that the Act aligns with its current compliance strategy. CEO Jeremy Allaire said the company already follows the audit and reserve standards required under the new law. Circle plans to continue its operations without changes, citing its existing adherence to audit-based transparency and cash-backed reserves.
With Tether entering through one pathway and Circle operating under another, the GENIUS Act has begun to reshape the stablecoin regulatory landscape. Both firms now face clearly defined routes for long-term operation within the U.S. market.
