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The US "GENIUS Act" reshapes the stablecoin landscape, posing severe challenges for USDT.
The U.S. GENIUS Act Reshapes the Global Stablecoin Landscape
With the formal signing of the "GENIUS Act", the United States has established a regulatory framework for digital stablecoins for the first time, which means that many stablecoin issuers will face new challenges. This article will answer the following key questions:
1. Main Content of the "GENIUS Act"
The full name of the "GENIUS Act" is "Guiding and Establishing the National Innovation Act for U.S. Stablecoins", which aims to establish a legal and regulatory framework for payment stablecoins to promote financial innovation, protect consumers, strengthen monetary sovereignty, and maintain financial stability. The main content includes:
Core definitions and scope: Regulation of payment stablecoins requires that only "approved payment stablecoin issuers" can issue stablecoins in the United States.
Regulatory Framework: Establish a dual-track regulatory system. Stablecoins with an issuance amount exceeding 10 billion USD are subject to the regulatory framework of the Federal Reserve Board and the Office of the Comptroller of the Currency, while those below 10 billion USD may choose state regulatory pathways.
Reserve requirement: The issuer must hold at least one dollar in permissible reserves for every dollar of stablecoin issued, including coins and currency, bank deposits, short-term government bonds, etc.
Transparency and Disclosure Requirements: Issuers need to establish and disclose stablecoin redemption procedures, and regularly report on the outstanding stablecoins and the composition of reserves.
National Security and Anti-Money Laundering Clauses: Require issuers to maintain anti-money laundering and sanctions compliance programs, monitor suspicious activities, and establish customer identification procedures, etc.
II. The Impact of the Bill on USDT and Tether Company
USDT is one of the most representative stablecoins in the current cryptocurrency market, issued by Tether. The "GENIUS Act" will severely restrict the development of USDT, making it difficult for Tether to meet the compliance requirements of the Act:
Reserve funds do not meet standards: The bill requires 100% reserves, while USDT currently has reserves of only around 85%.
Non-compliance of auditing institution: BDO Italia used by Tether does not meet the standards of the Public Company Accounting Oversight Board in the United States.
Assets that need to be sold due to non-compliance: Bitcoin, precious metals, corporate notes, and other asset reserves that do not meet the requirements of the law need to be replaced.
Difficult to support regular disclosure and strict anti-money laundering requirements.
If Tether fails to meet the requirements of the bill, it will face severe penalties:
3. The Differences Between the "GENIUS Act" and Hong Kong's "Stablecoin Regulation"
The U.S. GENIUS Act and Hong Kong's stablecoin regulations differ in the following aspects:
Issuer Access Requirements:
Reserve asset requirements:
Transparency and Audit Standards:
Penalties for Illegal Activities:
Overall, Hong Kong's policies are more balanced between stability and innovation, with greater inclusiveness; the United States focuses more on maintaining the dominance of the US dollar, with stricter restrictions on US dollar stablecoin issuers.