Important Highlights
- Teether will introduce a stabelcoin to suit the American market and align USDT with US rules.
- Circle is already compliant and sees the new regulation as a win for its transparent approach.
- The Genius Act is changing the Stabackoin market by demanding high standards from all.
Stablecoin Market Enters New Era with U.S. Regulation
The stablecoin world is shifting fast. With the recent passing of the GENIUS Act, the U.S. government has introduced its first official rules for stablecoins and the industry’s biggest players are moving quickly to respond.
Tether is launching a new U.S. specific stablecoin and pledging to bring its existing token, USDT, into full compliance.
On the other hand, Circle, the company behind USDC, is saying: “We’ve been ready for this all along.”
This new regulation could be a game changer not just for companies, but for anyone using or holding stablecoins.
As a result, the battle for trust and market share is just beginning.
Tether’s Stablecoin Strategy: Two Coins, One Big Goal
Tether’s CEO Paolo Ardoino just laid out a bold plan. The company is taking a “two-track” approach to expand in the U.S. under the new law.
First, Tether will launch a brand-new U.S. based stablecoin, created specifically for American users and fully compliant with the GENIUS Act.
That means 100% reserve backing, full transparency, and strict anti-money laundering (AML) controls.
At the same time, Tether will continue to support USDT its global token by aligning it with the law’s foreign issuer pathway.
While USDT won’t be a domestic coin, it can now operate legally in the U.S. for things like cross-border payments.
This marks a big shift for Tether. For years, critics have raised concerns about the lack of full audits and the use of non cash assets like bitcoin and gold in its reserves.
But Ardoino says the company is ready to change and they’ve set a three year goal to meet all regulatory standards.
In a post from the White House signing of the bill, he said:
“Now that President Trump has led the U.S. to embrace digital assets, we believe we can increase tenfold and help strengthen the dollar’s dominance.”
As Stablecoin Standards Increase, Circle Strengthens Trust.
While Tether is adapting, Circle is staying the course and feeling validated.
Jeremy Allaire, Circle’s CEO, called the GENIUS Act a confirmation of everything the company has stood for: transparency, regulation, and trust.
Cash and U.S. dollars have always supported USDC. Treasuries, and Circle already publishes regular audit reports.
So while others are racing to catch up, Circle is simply continuing what it’s been doing for years.
According to Allaire, institutions around the world are already trusting USDC because of its regulatory first model.
Now that the rules are clear, he believes more users will move toward stablecoins they can rely on and Circle is betting USDC will be the top choice.
What the GENIUS Act Means for the Stablecoin Industry
Here’s what the new law actually requires and why it matters:
- Full Reserve Backing: Every dollar of a stablecoin must be backed by cash or short-term Treasuries.
- Audits: Issuers must conduct annual third-party audits and make them public.
- AML Compliance: Strong anti-money laundering measures are now mandatory.
This is a big step for the industry. Until now, stablecoin rules were vague, and not every issuer played by the same standards.
That’s changing fast.
For companies like Circle, this is an opportunity to build more trust.
For Tether, it’s a chance to reset and grow but it won’t be easy.
They’ll need to become more transparent than ever before, and some are skeptical they can pull it off.
What’s Next for Stablecoins in the U.S.?
If you’re holding or using stablecoins, here’s what all of this means for you:
- Tether is gearing up for a long-term transformation. They’re serious about the U.S. market — but they’ve got work to do.
- Circle is already compliant, and they’re likely to benefit as the market favors transparency and trust.
The GENIUS Act is ultimately raising the standard for everybody. And this is a good thing.
StableCoins appear to be more secure and competitive than ever, whether you are interested in a cryptocurrency developer, trader, or just digital currencies.