Stablecoin Legislation Reshapes the Market: USDT May Lose Dominance, USD1 Rises Strongly

The U.S. stablecoin legislative framework, the "GENIUS Act," is gradually taking shape and may disrupt the market landscape.

Due to compliance issues, USDT may become the biggest loser, while USD1, backed by the Trump family’s WLFI, is rapidly rising thanks to its compliance advantages.

USDT Reserve Transparency Issues

USDT has long been questioned regarding the transparency of its reserves and compliance.

Although Tether claims a 1:1 peg to the U.S. dollar, its reserve composition, audit frequency, and offshore operating model have faced significant criticism.

The new regulations require stablecoin issuers to register in the U.S., obtain financial licenses, undergo regular third-party audits, and disclose reserve reports.

Tether’s offshore model and limited transparency make it difficult to adapt quickly.

USD1's Compliance Advantage and Rise

USD1 is pegged to the U.S. dollar and is 100% backed by short-term U.S. Treasury bonds, dollar deposits, and cash equivalents.

Custodied by BitGo, which holds a New York trust license, it meets institutional-level security and compliance requirements.

As of June 2025, USD1 has a market capitalization of $2.198 billion, ranking as the seventh largest stablecoin globally.

USD1 has a first-mover advantage under the "GENIUS Act" framework.

U.S. Exchanges May Delist USDT

As a leading compliant exchange in the U.S., Coinbase may be the first to delist USDT to avoid regulatory risks.

Binance U.S., constrained by U.S. regulations, may shift to support USD1 and delist USDT.

USDT's trading volume and liquidity in the U.S. market may significantly decline, weakening its global dominance.

Although it still has widespread use in Asia and Europe, regulatory trends in the U.S. market may trigger a chain reaction.

With compliance, political endorsement, and transparency, USD1 is expected to capture a larger share in both institutional and retail markets, attracting sovereign funds and corporate capital inflows.#美国加征关税 #特朗普概念币