Tether, the world's largest stablecoin issuer, has achieved a new milestone, minting a historic 160 billion USDT tokens. This significant expansion, including a fresh 2 billion tokens issued just today, comes amidst persistent rumors of a potential Initial Public Offering (IPO) and increasing examination of the company's reserve practices and its future in the United States.
Tether maintains that each USDT token is fully backed by reserves, primarily in U.S. Treasuries and gold. However, a long-standing point of contention for critics remains the absence of a comprehensive, full third-party audit to independently verify these reserves against its rapidly growing supply. While Tether has regularly published attestations from an accounting firm (BDO Italia), these are generally considered less rigorous than full audits.
A significant new challenge on the horizon for Tether is the proposed GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act). This bipartisan legislation, which recently passed the Senate with a 68-30 vote on June 17, 2025, and is now being considered by the House of Representatives this week (July 14th week), aims to establish the first comprehensive regulatory framework for payment stablecoins in the U.S.
If enacted, the GENIUS Act could have profound implications for Tether. It mandates stringent standards for reserves, requiring 1:1 backing with highly liquid assets like U.S. dollars or short-term Treasuries, and would necessitate annual independent audits by qualified public accountants, along with regular public disclosures of reserve composition. Crucially, the legislation also outlines provisions for regulating foreign issuers of stablecoins and their secondary trading by digital asset service providers in the U.S.
While Tether has previously navigated regulatory pressures in other jurisdictions, losing access or facing severe restrictions in the U.S. market could be far more impactful given its global reach and a significant user base. The company recently discontinued support for several legacy blockchains to focus on more active networks like Ethereum and Tron, a move CEO Paolo Ardoino stated was aimed at "channeling efforts into platforms that promise not just scalability but also robust developer activity and community vitality."
Despite its dominant position in the stablecoin market, Tether's continued growth is shadowed by questions surrounding its regulatory compliance, particularly in the U.S. As lawmakers debate the future of stablecoins, the spotlight on Tether's operational transparency and its role in the broader financial system is intensifying.
July 2025, Cryptoniteuae