Tether (USDT), the issuer of the largest stablecoin, has indicated that despite progress being made on US stablecoin legislation—specifically the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act—the company’s primary market focus will remain outside the United States. CEO Paolo Ardoino expressed that while Tether is "getting comfortable" with the GENIUS Act and plans to ensure compliance, the firm's main interest lies in serving emerging economies where demand for stable digital dollars is highest.
Ardoino highlighted that about 37% of USDT users utilize the stablecoin for savings, particularly in emerging markets where traditional financial services are limited and local currencies face depreciation. The GENIUS Act distinguishes between foreign and domestic issuers and requires stablecoin issuers to maintain 100% reserves in cash equivalents, preferably US Treasuries—a measure Ardoino favors as superior to Europe’s MiCA regulations.
Recognizing the distinct requirements of the US market, Tether plans to develop a domestically issued stablecoin with different features tailored for US regulatory and economic conditions. The CEO noted that stablecoins play a less critical role for payments in the US due to the prevalence of existing options like PayPal, debit and credit cards, and other systems. Hence, Tether aims to offer a competitive domestic stablecoin designed specifically for US users.
The GENIUS Act has advanced in Congress, with imminent final votes expected following the Memorial Day recess, and Tether awaits its passage before progressing further with the domestic stablecoin plans. Historically, Tether has faced regulatory scrutiny in the US, settling with regulators in 2021 and relocating management of its reserves to Cantor Fitzgerald, enhancing financial oversight.
