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Homepage > News > Business > Tether faces a choice: Comply or die? Last month, United States President Donald Trump signed the GENIUS Act into law. While many welcomed it as much-needed regulatory clarity, the Act forces Tether, the largest stablecoin issuer by market cap, to make a choice it has avoided for a decade now: comply with financial regulations or leave the U.S. market. Let’s explore what the GENIUS Act requires and what it means for stablecoin issuers like Circle and Tether. What the GENIUS Act requires The GENIUS Act creates a licensing regime for permitted payment stablecoin issuers. It allows a three-year window during which issuers must comply with the conditions laid out in the Act or leave the U.S. market. Conditions include: Holding 1:1 reserves in high-quality liquid assets. Monthly public reserve disclosures. Custody standards prohibiting the commingling of funds. Compliance with AML/KYC/CTF and sanctions rules. Bank-style supervision, reporting, and enforcement. And that’s just scratching the surface. Essentially, stablecoin issuers are now financial institutions subject to the Bank Secrecy Act and must abide by all the same rules as entities like JPMorgan (NASDAQ: JPM) or Bank of America (BOA). Issuers like Circle or Gemini, which have always attempted to comply with regulations, should be able to adapt. However, the new rules will cause significant problems for Tether. The world’s largest stablecoin issuer has a checkered history involving links to convicted money launderers, fines, and banks from New York, and a repeated refusal to submit to a full audit and prove its reserves. Can Tether survive the GENIUS Act? Tether as an entity can likely survive the GENIUS Act, but whether it will be able to operate in the U.S. and other regulated markets is another question. There are three possible scenarios for the world’s largest stablecoin issuer:…

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Filed under: News - @ August 13, 2025 11:29 am