{"id":851223,"date":"2025-05-26T09:11:42","date_gmt":"2025-05-26T14:11:42","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/05\/26\/tether-to-issue-separate-stablecoin-for-u-s-despite-getting-comfortable-with-the-genius-act-ceo-says\/"},"modified":"2025-05-26T09:11:42","modified_gmt":"2025-05-26T14:11:42","slug":"tether-to-issue-separate-stablecoin-for-u-s-despite-getting-comfortable-with-the-genius-act-ceo-says","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/05\/26\/tether-to-issue-separate-stablecoin-for-u-s-despite-getting-comfortable-with-the-genius-act-ceo-says\/","title":{"rendered":"Tether to issue separate stablecoin for U.S. despite \u2018getting comfortable\u2019 with the Genius Act, CEO says"},"content":{"rendered":"
\n

\"Tether Tether to issue separate stablecoin for U.S. despite \u2018getting comfortable\u2019 with the Genius Act, CEO says<\/span> Monika Ghosh \u00b7<\/span> 14 hours ago<\/span> \u00b7 3 min read<\/span> <\/span> <\/span> <\/span> <\/span><\/p>\n

\n
\n

Tether’s CEO said USDT will remain focused on the unbanked outside U.S. while the separate stablecoin will serve the U.S. market.<\/p>\n

\n
\n

<\/a><\/p>\n<\/div>\n

\n

3 min read<\/span><\/p>\n

Updated:<\/span> May. 25, 2025 at 11:35 pm UTC<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n

\"Tether<\/p>\n

Cover art\/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.<\/p>\n<\/div>\n<\/div>\n

\n

Tether<\/a> CEO Paolo Ardoino<\/a> told<\/a> Bloomberg on Friday that the company is \u201copen to\u201d creating a separate domestic stablecoin to meet the needs of the U.S. market. The news comes amid the U.S. trying to push through a stablecoin legislation\u2014the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act).<\/p>\n

The international issuer of the largest stablecoin, USDT<\/a>, is \u201cgetting comfortable\u201d with the GENIUS Act and will be compliant, Ardoino said. However, USDT\u2019s main market will continue to be emerging economies, because those are the markets that \u201cneed us the most,\u201d he added, stating:<\/p>\n

\n

\u201cWe believe in the importance of USDT as the most used digital dollar in all the emerging markets.\u201d<\/p>\n<\/blockquote>\n

Ardoino also added that Tether\u2019s plans for the U.S. domestically issued stablecoin are \u201ccloser to the second half,\u201d in terms of football games.<\/p>\n

Why Tether believes the U.S. needs a separate stablecoin<\/h2>\n

The World Bank estimates that around 1.4 billion adults remain unbanked, mostly concentrated in emerging economies in Sub-Saharan Africa and parts of Asia. Catering to the needs of these individuals, who have no access to traditional financial systems, is the main mission of Tether, according to Ardoino.<\/p>\n

Stablecoin users in emerging markets mostly use USDT for foreign remittances and to preserve the value of their savings amid local currency depreciations. Ardoino said that 37% of USDT\u2019s user base uses the stablecoin for savings, while Tether has over 420 million users across developing countries, adding:<\/p>\n

\n

\u201cThey [unbanked adults] need something that is stable in their lives, and that is the U.S. dollar in digital form, that is USDT.\u201d<\/p>\n<\/blockquote>\n

However, the U.S. needs a stablecoin to serve purposes different from those of users in emerging markets. Tether has been advocating that \u201cstablecoins are surely important also<\/i> in the United States,\u201d but with a wide array of payment methods available in the country, USDT is better suited to meet the needs of the unbanked population, Ardoino explained. He stated:<\/p>\n

\n

\u201cIn the U.S., you wouldn\u2019t use stablecoins for payments to improve the efficiency of our money.\u201d<\/p>\n<\/blockquote>\n

Therefore, Tether is looking to launch a domestically issued stablecoin that will be \u201ccompetitive\u201d in the U.S. economy. That is why the domestic stablecoin will have a \u201cdifferent feature set\u201d than USDT, Ardoino added.<\/p>\n

Tether wants to see the GENIUS Act passed<\/h2>\n

Ardoino said that Tether is \u201cvery interested\u201d in seeing how the U.S. government regulates stablecoins. He stated:<\/p>\n

\n

\u201cIt\u2019s important for us to see how the GENIUS Act is, in fact, distinguishing between the foreign issuers and the domestic issuers.\u201d<\/p>\n<\/blockquote>\n

Tether plans to ensure that USDT complies with the GENIUS Act, which Ardoino claimed is better than Europe\u2019s MiCA regulation. Tether\u2019s issue with MiCA is that it requires U.S. dollar-based stablecoins to hold 60% of their reserves as cash deposits in European banks, which is a \u201cbad idea,\u201d Ardoino said.<\/p>\n

The GENIUS Act, on the other hand, requires stablecoin issuers to hold 100% of their reserves in cash equivalents, preferably U.S. treasuries, which Ardoino called a \u201cgreat idea.\u201d<\/p>\n

Adroino does not foresee complications in complying with the GENIUS Act, whether as a foreign or domestic stablecoin issuer. However, he added that he wants to see the GENIUS Act passed because:<\/p>\n

\n

\u201c\u2026in general, we think that it\u2019s important for the domestic one [U.S. stablecoin of Tether] to have regulatory clarity before moving forward.\u201d<\/p>\n<\/blockquote>\n

On May 19, the U.S. Senate voted<\/a> to invoke cloture on the motion to proceed to the GENIUS Act. On May 21, the Senate voted<\/a> on a motion to proceed, moving the GENIUS Act closure to the vote on final passage. The final floor vote is expected to take place after Congress\u2019s Memorial Day recess.<\/p>\n

Mentioned in this article<\/h6>\n
\n
Latest US<\/span> Stories<\/h5>\n<\/div>\n
\n
Latest Tether<\/span> Stories<\/h5>\n<\/div>\n
\n
\n
Press Releases<\/h5>\n<\/header>\n<\/div>\n<\/div>\n<\/div>\n

Read More<\/a>
\n Monika Ghosh<\/p>\n","protected":false},"excerpt":{"rendered":"

Tether to issue separate stablecoin for U.S. despite \u2018getting comfortable\u2019 with the Genius Act, CEO says Monika Ghosh \u00b7 14 hours ago \u00b7 3 min read Tether’s CEO said USDT will remain focused on the unbanked outside U.S. while the separate stablecoin will serve the U.S. market. 3 min read Updated: May. 25, 2025 at<\/p>\n","protected":false},"author":1,"featured_media":851224,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22118,22944],"tags":[],"class_list":{"0":"post-851223","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-issue","8":"category-tether"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/851223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=851223"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/851223\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/851224"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=851223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=851223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=851223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}