The recently approved Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act has ushered in a new era for digital assets, prompting swift and significant responses from major players in the stablecoin market, Tether and Circle. This landmark legislation, aimed at providing regulatory clarity and enhancing market stability, is poised to reshape financial operations within the digital asset ecosystem.
Tether, issuer of the world's largest stablecoin, USDT, has affirmed its commitment to aligning its operations with the new U.S. regulations. Paolo Ardoino, CEO of Tether, expressed confidence in meeting compliance needs, underscored by the company's recent $1.3 billion profit. Ardoino emphasized transparency and adaptability as core virtues for Tether's evolution, stating, "Transparency and compliance are core to Tether’s evolution." In a strategic move, a new version of USDT is set to launch, specifically designed for institutional users, featuring structured audits and reserve reforms to meet the heightened regulatory demands.
Meanwhile, Circle, led by CEO Jeremy Allaire, has strongly endorsed the GENIUS Act, highlighting it as a model that validates their long-standing compliant approach to digital finance. Allaire believes the legislation essentially codifies Circle's operational practices into law, accelerating their growth opportunities as they transition from offshore cryptocurrency trading to legitimate digital dollar currencies integrated into the mainstream financial system.
Industry feedback on the GENIUS Act has been robust. While Tether and Circle are actively strategizing their adaptation, Coinbase CEO Brian Armstrong has called for expedited regulatory changes. He acknowledged the GENIUS Act as a crucial precursor but stressed the necessity for additional market structure legislation to fully support the burgeoning crypto economy.
The GENIUS Act primarily impacts the reserve policies of stablecoin issuers like Tether and Circle. Tether is proactively modifying its reserve foundation and audit processes, while Circle views this legislation as a critical endorsement of its existing operational model, which has earned trust from leading institutions due to its commitment to transparent audits and adherence to global regulatory standards.
As of today, July 19, 2025, Tether USDt (USDT) maintains its peg, holding a steady market price of $1.00. It continues to support a substantial market capitalization of approximately $160.91 billion, with a robust circulating supply of 160.81 billion USDT. Despite a 14.67% reduction in trading volume over the past 24 hours, CoinMarketCap reports minimal fluctuations over the past three months, reflecting USDT's continued market stability.
The GENIUS Act is seen as a significant step towards fostering institutional trust and potentially drawing more traditional financial players into the digital asset space, promising a more secure and integrated future for stablecoins.
July 2025, Cryptoniteuae