WSJ: Tether Could Emerge as Biggest Loser of "GENIUS Act" Due to "Incomplete Compliance"

BlockBeats News, June 25th, according to the Wall Street Journal report, the U.S. Congress is about to pass the "GENIUS Act," which will bring stablecoins into the financial mainstream. This legislation has sparked strong interest from startups, banks, and even giants like Walmart.

However, under the "GENIUS Act," stablecoin issuers must hold reserves in cash, short-term U.S. Treasury bonds, and other secure assets. Large issuers must also disclose audited annual financial reports. This poses a serious challenge to Tether, which holds a 66% market share of the stablecoin market (with a circulating supply of $156 billion). The company's USDT is currently partially backed by Bitcoin and gold, and has long refused to fully disclose financial details. Scott Armstrong, a former federal prosecutor who has handled crypto cases, pointed out: "This could lead to Tether being unable to continue operations in the United States."

Tether representatives did not respond to requests for comment. CEO Paolo Ardoino has previously stated that they may issue a localized stablecoin to maintain U.S. operations. The Act has set a compliance transition period: the Senate version provides a 3-year grace period, while the accompanying bill under House deliberation requires compliance within 18 months, ultimately needing the signature of President Trump, who supports the Act, to take effect.

Prior to this, Tether CEO Paolo Ardoino revealed at the Bitcoin 2025 Conference that the company currently holds over 100,000 BTC (worth over $10 billion) and over 50 tons of gold. According to the latest financial report, as of the end of the first quarter of 2025, Tether held Bitcoin valued at over $7 billion (calculated at $83,000 per BTC at the time) and physical gold bars valued at over $6 billion.