According to BlockBeats, on June 25, the U.S. Congress is about to pass the (GENIUS Act) which will integrate stablecoins into the financial mainstream, sparking interest from startups, banks, and giants like Walmart.
According to the bill, stablecoin issuers must hold cash, short-term U.S. Treasury bonds, and other secure assets as reserves, and large issuers must publish audited annual financial reports. This poses a challenge for Tether, which holds a 66% share of the stablecoin market.
Tether's USDT is currently partially backed by Bitcoin and gold, and has long refused to disclose financial details. Former federal prosecutor Scott Armstrong pointed out that this could lead to Tether being unable to continue operating in the U.S.
Tether representatives did not respond to requests for comment. CEO Paolo Ardoino stated that a localized stablecoin may be issued. The bill sets a transition period, with the Senate version granting a 3-year grace period, while the House version requires compliance within 18 months, ultimately needing to be signed into effect by President Trump.
