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GENIUS Act’s Current Form is ‘Great for Tether USDT’ – Here’s Why!
In a significant development, the GENIUS Act has been advanced by the U.S. Senate Banking Committee for debate and vote. According to analysts, the current form of this bill offers tremendous benefits to Tether USDT (USDT).
The key takeaway is that the GENIUS Act would allow Tether to register in the United States or operate offshore without significant consequences. This flexibility could be a huge relief for the issuer, especially considering a recent JPMorgan report implied they may face potential banishment from the U.S. under new stablecoin bills.
According to Alex Thorn, Head of Research at Galaxy Digital, “In its current form, the GENIUS Act is great for Tether. The door is open for them to register onshore, but if they don’t, they are only prohibited from: USDT being used for interbank settlement and marketing USDT onshore as a ‘stablecoin'”.
This flexibility could significantly benefit Tether’s operations in the U.S., allowing it to continue growing without any significant disruptions. The potential impact is evident in Tether’s recent market performance, with its market size hitting an all-time high of $143 billion amid growing interest in stablecoins and the European Union’s delisting.
Tether’s CEO, Paolo Ardoino, has also expressed support for the bill, highlighting USDT as a vital component supporting the U.S. dollar in emerging markets, countering the trend of de-dollarization by BRICS nations.
In essence, if Tether is accommodated under the GENIUS Act, it could lead to significant relief and potentially boost demand for U.S. treasury bills (debt). As noted by finance lawyer Scott Johnsson, “Generally thinks it strikes a good balance between allowing offshore issuers like Tether to continue growing while keeping them on a level playing field with domestic issuers within the US.”
Source: https://ambcrypto.com/genius-acts-current-form-is-great-for-tether-usdt-heres-why
