Tether is coming to the US: A major challenge for Circle

Tether, the world's largest issuer of the USDT stablecoin, is planning to launch a new USD-backed stablecoin in the US by the end of this year. This move is expected to play an important role in the US financial system, particularly in the fields of institutional payments and interbank transactions.

The entry of #Tether into the US is an ambitious step, especially after the passage of the GENIUS Act, which establishes a legal framework for stablecoins. However, to operate in the world's largest market, Tether faces many stringent requirements:

Registration and approval by the Office of the Comptroller of the Currency (OCC).

Providing audited financial reports to publicly disclose the reserves backing the stablecoin. Finding a reputable auditing firm is a major challenge, as Tether currently relies on "attestations" that are less reliable than full audits.

Tether will also face fierce competition from Circle, the issuer of USDC. Circle, under the leadership of CEO Jeremy Allaire, has long complied with the regulations of #MiCA (EU) and the US. This compliance strategy has paid off significantly as Circle successfully IPO'd on June 5, with its stock price soaring 522%.

Despite gaining an advantage from the support of the Trump administration, Tether's realization of its ambition to become a core part of the US financial system will be a major challenge, requiring the company to change its mindset to adapt to stringent regulations and compete with experienced compliance rivals like Circle.