Tether Aims to Re-enter the U.S. Market: New Strategies and Challenges Under the GENIUS Act

Tether is actively planning to return to the U.S. market under the recent push of the U.S. "GENIUS Act". This move marks Tether's shift in focus towards the U.S. institutional market after experiencing past regulatory challenges, aiming to provide efficient stablecoin services. This article will delve into Tether's new strategy, the competition it faces, and the potential impact on the Crypto Assets market.

Tether's Entry into the U.S.: A New Chapter Under Favorable Policies

After U.S. President Donald Trump signed the landmark "GENIUS Act", Tether is ramping up its domestic strategy in the United States. Tether CEO Paolo Ardoino stated that the company will focus on the U.S. institutional market, aiming to provide efficient stablecoin solutions for payments, interbank settlements, and trading. This new legislation is expected to expand the role of stablecoins in global finance and even allow banks, card networks, and tech companies to issue their own digital tokens, creating a favorable policy environment for Tether's return to the U.S.

The shadows of past regulation and today's market dominance

Since reaching a settlement of nearly $60 million with U.S. regulators in 2021, Tether's business focus has largely shifted overseas. The New York Attorney General's Office had previously accused it of misrepresenting its reserves, and the Commodity Futures Trading Commission also imposed fines for misleading the public about Tether's support for USDT, banning it from operating in New York. Despite regulatory setbacks, Tether's USDT token still dominates the global stablecoin market, with a current circulation exceeding $162 billion, an 18% increase since the beginning of the year. Its closest competitor, USDC issued by Circle Internet Group, has a circulation of about $64.7 billion.

Market Competition and Future Outlook: IPO is Not the Path for Tether

Tether's return to the US market comes at a time of intense competition. The stock price of Circle, which recently went public, has soared over 500%, but Ardoino has made it clear that Tether has no intention of going public at this time.

For a long time, Tether has been controversial due to its insufficient transparency regarding reserves, and the promised audit reports have been delayed for years. However, Ardoino revealed that the company has recently contacted auditing firms, which may indicate an improvement in transparency.

Deeply cultivate emerging markets and build a global leading advantage

While re-entering the US market, Tether will continue to adhere to its core strategy of deepening its presence in emerging markets. Ardoino emphasized that these regions are Tether's priority development direction, and the company believes it has a significant advantage over competitors in terms of technology and market understanding. He stated, "This is something Tether has done exceptionally well over the past decade. We have better technology, and we understand this market better than anyone else."

The passage of the "GENIUS Act" is expected to promote the standardized application of stablecoins in Crypto Assets trading and mainstream financial infrastructure for the first time, opening new development opportunities for global stablecoin giants like Tether.

Conclusion

Tether's return to the U.S. market is not only an important step for its own development, but also reflects a positive shift in U.S. regulation regarding stablecoins. Against the backdrop of favorable policies and intensified market competition, whether Tether can successfully integrate into the U.S. financial system and address the long-standing transparency issues while maintaining its advantages in emerging markets will be key challenges for its future development. Crypto Assets users and investors should closely monitor the performance of Tether's USDT stablecoin in the compliance process.