Tether Sweeps U.S. Treasury, Stablecoin Bill Rapidly Heats Up!

Tether has suddenly become a major player in U.S. Treasuries, while Washington is busy amending laws to regulate it?

The U.S. Senate is accelerating the advancement of the "GENIUS Act" in an attempt to set rules for the stablecoin market. Meanwhile, leading stablecoin provider Tether has quietly entered the ranks of the largest holders of U.S. Treasury bonds, surpassing Germany, with holdings exceeding $120 billion. This "financial double-edged sword" has left the market highly tense.

Senate "Green Light," Accelerated Regulation of Stablecoins:

The bill has passed a procedural vote with 66 votes in favor and 32 against, laying the groundwork for a final vote by the end of May. Once enacted, all stablecoin issuers must meet three major requirements:

Fully backed by reserves, rejecting algorithmic support;

Subject to third-party audits;

Only licensed institutions are allowed to issue.

The bill also explicitly bans algorithmic stablecoins, directly responding to the regulatory shadow cast by the collapse of Terra.

Democrats Concede, but Conditions are Harsh:

Although some Democratic lawmakers initially opposed advancing the bill due to the Trump family's interests in crypto, they ultimately relented and supported entering formal debate under increasing pressure. However, they insisted on strengthening anti-money laundering (AML) and know your customer (KYC) requirements.

Warren Fires Back, Names "Trump Coin":

Elizabeth Warren remains uncompromising, harshly criticizing the bill for enabling crypto corruption. She specifically named the Trump family for profiting from crypto, particularly the recently issued "$1 Stablecoin," which has surged to become one of the top seven globally by market capitalization. Warren exclaimed, "If this bill passes, the Trump family will once again make hundreds of millions."

The battle over crypto regulation is heating up, with Tether, U.S. Treasuries, and Washington in a fierce struggle. Who will prevail? The answer will be revealed in May.