In a significant development for the cryptocurrency industry, the latest version of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act proposes bringing Tether, the issuer of USDT, under U.S. jurisdiction, irrespective of its offshore base. This amendment intends to broaden American regulatory oversight to foreign stablecoin issuers within the U.S. financial ecosystem. The news was highlighted by Whale Insider on X, drawing considerable attention from the crypto community. JUST IN: $USDT issuer Tether to be brought under U.S. jurisdiction, regardless of where it is based, according to newest version of GENIUS stablecoin bill. pic.twitter.com/0MQndZwQ4t — Whale Insider (@WhaleInsider) May 9, 2025 Background on the GENIUS Act The GENIUS Act requires stablecoins to be fully backed 1:1 with U.S. dollars or approved liquid assets, aiming to create a robust regulatory framework. The GENIUS Act also mandates transparent redemption policies and stablecoin price stability relative to the U.S. dollar. The Act delineates federal standards for permitted payment stablecoin issuers, including requirements for fully backed reserves, segregation of reserves, monthly certification, and compliance with capital and liquidity standards. Challenges and Revisions Despite its initial bipartisan support , the GENIUS Act faced hurdles in the Senate. The bill stalled on May 8, 2025, amid concerns about regulating foreign stablecoins and strengthening anti-money-laundering provisions. Democrats expressed heightened concerns following revelations about World Liberty Financial, a crypto firm linked to President Donald Trump , planning to use its stablecoin in a $2 billion deal with an Abu Dhabi investment firm for Binance. Senator Mark Warner, who had previously supported the bill, withdrew his backing, citing unfinished legislative text. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Implications for Tether and the Crypto Industry The revised GENIUS Act’s provision to bring foreign-based stablecoin issuers like Tether under U.S. jurisdiction signifies a move towards stricter regulatory oversight. This could have far-reaching implications for the crypto industry, potentially setting a precedent for how the U.S. regulates foreign entities operating within its financial system. For Tether, this means adhering to U.S. regulatory standards, including compliance with anti-money laundering and know-your-customer requirements, regardless of its operational base. Looking Ahead As the amended GENIUS Act is presented to the Senate, its progress will be closely monitored by stakeholders across the financial and crypto sectors. The outcome will affect Tether and influence the regulatory landscape for other stablecoin issuers and the broader cryptocurrency market. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post USDT Issuer Tether to be Brought Under U.S. Jurisdiction, Says New Version of Stablecoin Bill appeared first on Times Tabloid .
