Opinion: Tether may become the biggest loser of the GENIUS Act due to “incomplete compliance”
as reported by The Wall Street Journal, the "GENIUS Act" to be passed by the US Congress will bring stablecoins into the financial mainstream. This legislation has sparked strong interest from startups, banks, and even giants like Walmart. However, according to the "GENIUS Act", stablecoin issuers must hold cash, short-term US Treasury bonds, and other safe assets as reserves, and large issuers must also disclose audited annual financial reports. This poses a serious challenge to Tether, which holds a 66% market share in the stablecoin market (with a circulation of $156 billion) - the company's USDT is currently partially backed by Bitcoin and gold, and has long refused to fully disclose financial details. Scott Armstrong, a former federal prosecutor who has handled cryptocurrency cases, pointed out: "This could lead to Tether no longer being able to operate in the United States." Tether representatives did not respond to requests for comment.
