🇺🇸 🔍 What About the Genius Act? Does It Apply to USDT?

#GeniusAct (Guiding Enhanced Neutrality in Ubiquitous Stablecoins) — a regulatory framework aimed at stablecoin transparency, auditing, and reserve requirements. It’s outlines strict rules for stablecoins used in U.S. markets, especially those pegged to the dollar.

Key Genius Act requirements include:

• Full monthly audits by independent firms

• All stablecoins must be 100% backed by high-quality liquid assets (cash, T-bills)

• No algorithmic or fractional reserve models

• Registration with U.S. regulatory bodies like the OCC or Federal Reserve

So — does $USDT qualify under the Genius Act?

Short answer: Not currently.

Tether is not a U.S.-regulated entity, and it does not comply with full audit standards demanded by the Genius Act. Most of its operations are offshore, and while it publishes attestations, these are not equivalent to audits mandated by U.S. law.

USDT could face restrictions or even be banned from operating in the U.S. — unless Tether makes major changes to its compliance and transparency standards.

In contrast, USDC (by Circle) is much more aligned with the Genius Act principles, making it the preferred option for U.S.-based institutions and traders seeking regulatory clarity.

⚠️ Implications for USDT Users

• Global traders and DEX users may continue using USDT with little interruption

• U.S.-based platforms could delist or limit USDT if the Genius Act becomes law

• Regulatory risk is increasing for Tether unless they adapt — or shift focus away from U.S. markets

For crypto users, this means diversifying into multiple stablecoins and staying alert to regulatory developments is more important than ever.