Tie the rope
It is the world’s leading stablecoin. Its digital simulation of the dollar (the final number is $155 billion) is unparalleled. But with the impact of things, it is almost certain that bondage doesn’t meet compliance requirements for U.S. lawmakers, as they are expected to be closer to the law on Tuesday afternoon.
According to experts’ forecasts, Tether may eventually have the option to skip some serious basketball to comply with future laws, or back down and try to maintain non-U.S. market share, as the size of the U.S. industry may increase, and the federal government plays a habitual role in guiding regulatory requirements in other jurisdictions around the world.
Guide and build stable national innovation in the United States in 2025 (Genius) Behavior It is the U.S. Senate bill that faces the final path to pass on Tuesday, the first item in major crypto legislation. It then goes to the House for approval or to make it clear. Finally, both chambers must enable President Donald Trump to sign it into law.
In its current form, the legislation leaves a path for foreign stable issuers in the United States, but that can be complicated. Broadly speaking, if a company like Tether wants to provide tokens to our users, it must be regulated by foreign regimes, which are also approved to be similar to the United States – depending on the final language – they may need to maintain liquidity in the Monetary Audit Board, the corporate auditing agencies of the federal banking regulator, and among businesses in the United States, and be supervised by the monetary auditor and required by the monetary auditor.
All issuers under potential legal supervision must follow strict reserve standards, maintain cash, treasury and other related high-liquidity assets, one-to-one matching their issuance. They also need to review their registered public accounting firms monthly and certified by the company’s CEO and CFO, meaning top executives will face legal liability for misleading the public. This is an unusually powerful oversight that requires public assurance from Stablecoin issuers more frequently than other financial institutions.
Additionally, both companies must comply with all the money laundering control kits faced by U.S. financial companies.
No tether?
“I’m tied up, I’m not going to go to America to America, ‘I’m sure I want to be part of it, I want to participate in this game,’ until I know what the regulations are.” Steve Gannona lawyer who worked with Davis Wright Tremaine’s digital asset client in a Coindesk interview. “In terms of the need to comply with these regulations, the downstream impact on the train could be a substantial investment in time, energy, people, money and technology.”
Finally, the tether – the most Profitable business In the world – it may continue to focus on emerging markets, where the Genius Act has little impact. Tether recently found its headquarters at Crypto Haven El Salvador, which is clearly not one of the world’s outstanding figures in financial regulation.
Nevertheless, U.S. legislation provides a huge discretion to the Treasury Secretary, demanding calls for which countries have good enough regulations and whether various exemptions can be granted to certain companies.
According to the committee of Senator Elizabeth Warren, the bill’s chief rival, Senator Elizabeth Warren, reached a reciprocal agreement in El Salvador, which allowed full access to the U.S. market while avoiding the bill’s requirements. ”
“It’s hard to imagine El Salvador building a regime as complex and secure as the U.S. regime, even if that’s so weak,” said Corey Frayer, director of investor protection at the American Consumer Federation and a former crypto policy adviser for the Securities and Securities Commission. “However, because of the current regulators, they are still eligible for reciprocity and see it as complying with the same standards.”
Despite strong remarks from Warren and her allies, it still couldn’t stop many of Democratic colleagues from supporting the bill, which supporters believe will start monitoring and controlling at least key parts of the industry.
Critics of the bill argue that it still allows the dissemination of major vulnerabilities of unregulated foreign stability on decentralized crypto platforms in the United States
Warren is A speech in the Senate last week. “It also includes huge vulnerabilities that will allow Tether, a notorious foreign Stablecoin issuer now based in El Salvador, to enter the U.S. market.”
Tether’s US Project
But, tether CEO Paolo Ardoino Consider carefully the branch settlement in the United States Stablecoin This may be fully regulated at home.
U.S. regulations are going to bite a lot because they are bound, which is not anywhere in checking these boxes. The company did not respond to a request for comment on the Genius Act, but Tether updated its users in its online fine print this year: “If Tether does not comply with the changed regulatory regime, Tether and its affiliates may take regulatory actions, which could adversely affect the yarn wire and its ability to operate.”
While the Senate progress is a huge and unprecedented policy victory for the digital asset sector, there is still a lot of uncertainty as the House will have its own say and the more important partner legislation (the bill will set regulations for the rest of the cryptocurrency sector, but is still being made. Stablecoin issuers won’t get a definite answer about its U.S. rules until the law clears Trump’s desk and associated federal agencies and then turns it into specific regulations.
“The path forward of foreign issuers will face two obstacles that are not known yet: (1) ultimately law allows foreign issuers to be relative to U.S. customers, and under what conditions are conducted, and (2) how to exercise any relevant regulatory discretion to allow or limit access to the U.S. market. Coindesk. “This is a politically controversial area and remains to be seen.” ”
But Frayer told Coindesk that House members are unlikely to make Tether less palatable, especially in front of the company’s allies in the Trump administration, Commerce Secretary Howard Lutnick Former agent Cantor Fitzgerald See him manage Tether’s U.S. reserves.
“I don’t think the house has any further bound ropes in the world,” Freyer said, adding that if giant non-bank competitors start to launch stablecoins, such as Google and Amazon, there might be some motivation to make the house do more on this issue. ”
The competition hovered?
American corporate circles and their
Having been waiting for the wings to capture market share from chief rival Tether, the circle intends to become inside after some expect to become a surge in U.S. cryptocurrency. If institutional investors and traditional financial companies advocate digital assets as the industry wants, Tether may miss the action if he continues to stay outside the U.S. financial system.
Earlier this year the SEC Added some Stablecoins The agency sees it as an increasing number of crypto projects landing outside its areas of focus. However, there are some warning signs in the agency’s statement.
Even if the regulator (run by crypto-friendly leaders since Trump’s election) dismissed stable securities jurisdiction, it noted in its footnote that proper Stablecoin reserves “excluding precious metals or other crypto assets,” Tether reserve. The Genius Act clearly declares: “Payment stables are not securities or commodities, and the Stablecoin issuer is not an investment company, but this is not the law.
Technically, such considerations go beyond Tether’s concern in its current business model, which deliberately stays away from direct contact with U.S. customers. at present.
