Tether, the dominant player in the stablecoin market regarding the total value of coins issued, has declared its intention to adhere to the forthcoming United States stablecoin legislation, known as the GENIUS Act.
This new set of rules and guidelines will encompass both of Tether’s existing stablecoin offerings: the widely circulated USDT, and its more recent counterpart, USAT, which is backed by assets held in the United States.
USDT to Comply with GENIUS Act
Bo Hines, who heads Tether’s operations within the United States, formally announced this development during a press conference held at the Korea Blockchain Week (KBW2025) in Seoul on Tuesday.
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“It is my belief that both USDT and USAT will successfully meet the compliance requirements as set forth by the GENIUS Act,” Hines stated during his presentation.
Reporters from BeInCrypto were present at the conference. Hines indicated that aligning with the GENIUS Act will facilitate closer collaboration between Tether and financial institutions and regulatory bodies within the US.
Tether recently introduced USAT, a new stablecoin distinct from their flagship USDT. The company has stated that the launch of USAT was a direct response to the US government’s passage of the GENIUS Act, a comprehensive piece of legislation focused on regulating stablecoins.
Following the introduction of USAT, Tether appointed Hines, a former Executive Director of the White House’s Digital Asset Advisory Committee, to oversee their US-based activities.
This appointment has triggered speculation that USAT is specifically designed for use within the United States, while USDT will continue to serve the global market. USDT has encountered regulatory hurdles in numerous countries. For example, it was essentially excluded from the European Union following the implementation of the MiCA regulations.
However, Tether refutes these speculations. Hines expressed confidence that USDT will also comply with the GENIUS Act, pointing to the law’s inclusion of a reciprocity provision. “We anticipate that the US will extend reciprocity to Tether International,” he said.
Article 18 of the GENIUS Act contains a reciprocity clause, which permits stablecoin issuers from nations with regulatory frameworks similar to those in the US to distribute their stablecoins within the United States.
Furthermore, Hines encouraged other nations, including South Korea, to emulate the US regulatory model. “I would advise other regulatory bodies, including Korea, to take inspiration from the framework established by the US,” he stated. “We are incredibly proud of the framework we’ve built… it is a clear and robust foundation that we are continuing to build upon through various technological advancements,” Hines concluded.