Tether is preparing a major push into the US stubcoin market under the framework of a new genius law. CEO Paolo Ardoino confirmed that USDT will comply with future US Stablecoin regulations through foreign issuer routes. This allows Tether to legally issue USDT in the US and advance in achieving full regulatory compliance in three years.
Tether’s Stablecoin pushes in the US
Tether plans to launch new US market products that are more consistent with local regulations. On Friday, a new US Stubcoin Act was enacted, dubbed the Genius Act, and stable publishers operating within the US jurisdiction must comply with that requirement.
Some of the key provisions are audited reserves, anti-money laundering programs, and proper disclosure of operations by foreign and national issuers. Tethers operate under the provisions of the law that allow entry by foreign issuers under lighter requirements with periods to obtain full compliance.
Ardoino emphasized that Tether will make the necessary efforts to meet the requirements of the US without sacrificing its privacy-focused approach. The US is making this move in the midst of growing rivalry between tether and circle, the bodies that issue USDCs.
Both companies are increasingly used in regular finance and are interested in operating within a regulated market. Circle CEO Jeremy Allaire said Circle has long embraced compliance and transparency and welcomes competition from Tether.
Increase compliance and transparency and gain US regulatory trust
At recent events, both CEOs appeared publicly, but were not directly involved in debates or lined debates. Circle is already a US regulated company with national proof, but Tether had a relatively lack of transparency and had a past.
Ardoino announced this awareness, saying that Tether is in a better position to withstand questions with improved auditing and forensic checking tools. According to him, the new US-centric stubcoin will further reveal Tether’s flexibility to jurisdiction requirements and regulatory clarity.
Tether’s expansion into regulated markets is parallel with efforts to work with law enforcement globally. In Brazil, Tether recently helped authorities by freezing $32 million (approximately $6 million) linked to a massive fraud business.
This bust was part of Operation Magna Fraus, a massive investigation into PIX payment system fraud and criminal financial flows. Prosecutors, including blockchain investigators and Brazilian federal police, found a wallet and a private key that would be used to wash the stolen funds.
After they received the legal request, Tether’s compliance team moved quickly and frozen targeted USDT Holdings. Brazilian officials have made public about the role Tether played in reviving confidence in the country’s digital payments industry.
Tether shift to compliance
This action is added to the list of increased enforcement actions Tether used its tool to assist in the investigation. Previously, Tether had frozen $225 million in USDT related to human trafficking networks identified by US Homeland Security.
It also helped to freeze $23 million in funds for Galantex exchanges related to Russia after sanctions by US authorities. Overall, Tether has frozen over 5,000 wallets in several jurisdictions after accepting to cooperate with the formal investigation.
Tether is currently selling it as a stubcoin with a strong regulatory response and proven record blocking illegal financial activities. The company says its ability to track, flag and freeze assets provides its own tools to support legal processes globally. This shift will help transform USDT awareness from high-risk assets to compliant products with strong market utilities.
US lawmakers and regulators are closely watching how Stablecoin issuers handle money laundering, cross-border flows, and chain surveillance. By highlighting success in Brazil and elsewhere, Tether is strengthening its value as both a market leader and an executive partner.
Stubcoin domination competition in the US market
In the meantime, the rivalry between Tether and Circle will likely surge as stubcoins become more widely used in the payment rails and banking industry. Many institutions prefer circles because they are US-based companies and have a visible reserve structure in the US.
Nevertheless, the advantage of tether is that it is a major global player and has a more substantial depth of liquidity, allowing you to gain confidence in the US market. Circles gain traction through regulations, but cannot rival adoption and usefulness. Tether believes his next move is to make USDT the globally most popular digital dollar alternative, and that he can achieve this by accessing the US market.
