Following the signing of the GENIUS Act by President Donald Trump on July 18, 2025, a new federal framework for stablecoin regulation has been established in the US.

The GENIUS Act empowers the Federal Reserve to license and oversee dollar-backed stablecoin issuers, requiring full reserve backing, regular audits, and anti-money laundering measures.

While the act presents growth opportunities, it also imposes strict compliance obligations on Tether, which operates from El Salvador and must adhere to US licensing standards.

Tether's CEO, Paolo Ardoino, expressed optimism that regulatory clarity from the GENIUS Act could boost USDT adoption and strengthen the dollar’s dominance in the digital asset market.

In response, Tether has committed to improving transparency by pledging to conduct a full audit of its reserves, addressing concerns among regulators and analysts about its compliance capabilities.

Currently, Tether has over $160 billion in USDT in circulation with more than 500 million users worldwide, and a tenfold increase could raise its supply to $1.6 trillion, further solidifying its market leadership.

Tether's CEO also announced the potential for USDT supply to increase tenfold, possibly exceeding $1 trillion, if regulatory and market conditions favor such growth.

This development marks a significant milestone in US crypto regulation, aiming to establish a more structured and transparent environment for stablecoins.