- Analysts, those ever-optimistic seers, suggest the GENIUS Act could cradle Tether with but a few conditions.
- The U.S. Senate Banking Committee, in a fit of legislative enthusiasm, has nudged the bill forward for debate and a vote.
Ah, the U.S. stablecoin bill, the GENIUS Act, a veritable cornucopia of opportunities for Tether’s USDT, or so the policy watchers, those modern-day oracles, would have us believe. 🧐
Indeed, Alex Thorn, the illustrious Head of Research at Galaxy Digital, has proclaimed that Tether now dances on the precipice of flexibility, free to register in the United States or frolic offshore without the specter of dire consequences looming overhead. He mused,
“In its current form, the GENIUS Act is a veritable banquet for Tether. The door is ajar for them to register onshore, but should they choose to remain aloof, they are merely barred from: USDT being used for interbank settlement and marketing USDT onshore as a ‘stablecoin.’”
What’s next for Tether? A thrilling sequel, perhaps?
Thorn, with the wisdom of a sage, added that Tether already tiptoes along the path of compliance with most provisions, ready to waltz smoothly within the U.S. borders.
“If they don’t register, though, they can still exist and be traded onshore provided they comply with OFAC/FinCEN BSA orders (and they do already comply today).”
However, our dear exec believes that additional restrictions might compel the firm to conjure a U.S.-based subsidiary, should they fail to meet certain whimsical requirements.
“I think they either register and meet collateral requirements, or they spin up a subsidiary with an alternate version of USDT that meets all requirements and use that one in the US.”
In a delightful echo of Thorn’s sentiments, finance lawyer Scott Johnsson chimed in, suggesting that offshore stablecoin issuers like Tether would, in a twist of fate, boost demand for U.S. treasury bills (debt). Oh, the irony! 💸
“Generally thinks it strikes a good balance between allowing offshore issuers to continue growing (soaking up Tbills) while keeping them on a level playing field with onshore issuers within the US.”
The same refrain was sung by Tether’s CEO, Paolo Ardoino, in a recent tête-à-tête with Bloomberg, where he declared,
“USDT is representing the last stronghold in support for the US dollar in the emerging markets when everywhere else there’s a de-dollarization push from BRICS nations.”
If the bill indeed embraces Tether, it could be a monumental sigh of relief, especially after a rather scathing report from JPMorgan hinted that the issuer might find itself banished from the United States under the new stablecoin edicts. 😱
The GENIUS Act was marked up and advanced for a vote in the Senate by the Banking Committee on the 13th of March. Tim Scott, the Chairman of the Senate Banking Committee, waxed poetic on the matter, stating,
“This (GENIUS Act) is about keeping innovation and opportunity on American soil rather than driving it overseas.”
Meanwhile, USDT’s market size has soared to a staggering $143 billion, a testament to the growing interest in stablecoins and the European Union’s recent delisting. What a time to be alive! 🎈
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2025-03-15 18:20