WSJ: Tether May Be Biggest Loser in "GENIUS Act" Due to "Incomplete Compliance"

On June 25th, as reported by The Wall Street Journal, the U.S. Congress is on the verge of passing the "GENIUS Act," which aims to integrate stablecoins into the financial mainstream. This legislation has attracted significant interest from startups, banks, and even giants like Walmart. However, according to the "GENIUS Act," stablecoin issuers are required to hold safe assets such as cash and short-term U.S. Treasury bonds as reserves. Larger issuers also need to disclose audited annual financial reports. This poses a serious challenge to Tether, which holds a 66% share in the stablecoin market (with a circulation of $156 billion). Currently, the company's USDT is partially backed by Bitcoin and gold and has long refused to fully disclose its financial details. Scott Armstrong, a former federal prosecutor who has handled crypto cases, pointed out that "this could lead to Tether being unable to continue operating in the U.S." Tether representatives did not respond to requests for comment. CEO Paolo Ardoino has previously mentioned the possibility of issuing a localized stablecoin to maintain U.S. operations. The Act provides a compliance grace period: the Senate version offers a 3-year grace period, and the accompanying bill under House review requires compliance within 18 months. Ultimately, the Act will come into effect only after it is signed by President Trump, who supports it.