Tether is preparing a major push into the U.S. stablecoin market under the framework of the new GENIUS Act. CEO Paolo Ardoino confirmed that USDT will comply with upcoming U.S. stablecoin regulations through the foreign issuer pathway. This will enable Tether to legally issue USDT in the U.S. and plan forward to achieving complete regulatory compliance in three years.
Tether’s Stablecoin Push in the U.S.
Tether intends to also launch a new U.S. market product that would be more consistent with local regulations. On Friday, a new U.S. stablecoin law, named the GENIUS Act was enacted, and the issuers of stablecoins operating within the U.S. jurisdiction must comply with its requirements.
Some of the key provisions are audited reserves, anti-money laundering programs, and adequate disclosures of operations by foreign and domestic issuers. Tether will operate under a provision in the law that permits entry by a foreign issuer under lighter requirements with a period to obtain full compliance.
Ardoino stressed that Tether will put in the necessary efforts to fit U.S. requirements without sacrificing its privacy-focused approach. The U.S. is making this move in the midst of the growing rivalry between Tether and Circle, the body issuing USDC.
Both firms are interested in operating within regulated markets as stablecoins are becoming increasingly used within conventional finance. Jeremy Allaire, CEO of Circle, said Circle has long embraced compliance and transparency, and welcomes competition from Tether.
Enhancing Compliance and Transparency to Gain U.S. Regulatory Trust
At a recent event, both CEOs appeared together publicly but did not directly engage in debate or side-by-side discussion. Although Circle is already a U.S.-regulated firm with a public attestation, Tether has had a past with a relative lack of transparency.
Ardoino made this recognition, saying that Tether is now in a better position to withstand questioning with improved audits and forensic check tools. According to him, the new U.S.-centric stablecoin would further reveal the flexibility of Tether to the jurisdictional requirements and clarity of regulations.
Tether’s expansion into regulated markets comes alongside efforts to cooperate with law enforcement globally. In Brazil, Tether recently assisted authorities in freezing R$32 million (around $6 million) tied to a major fraud operation.
The bust was part of “Operation Magna Fraus,” a large investigation targeting PIX payment system fraud and criminal financial flows. Prosecutors, who included blockchain investigators and Brazilian federal police, found wallets and private keys used for laundering stolen funds.
After they received legal requests, Tether’s compliance team moved fast to freeze the targeted USDT holdings. The officials of Brazil made a public announcement about the role that Tether played in re-enabling confidence in the country’s digital payment industry.
Tether’s Shift towards Compliance
The operation adds to a growing list of enforcement actions where Tether has used its tools to aid investigations. Previously, Tether froze $225 million in USDT related to a human trafficking network identified by U.S. Homeland Security.
It has also helped to freeze $23 million in funds of the Russian-linked Garantex exchange following a sanction by the American authorities. Overall, Tether has frozen more than 5,000 wallets in several jurisdictions after accepting to cooperate with formal investigations.
Tether now markets itself as a stablecoin with strong regulatory responsiveness and a proven record of blocking illicit financial activity. The company says its ability to track, flag, and freeze assets gives it unique tools to support legal processes globally. This shift is helping change perceptions of USDT from a high-risk asset to a compliance-capable product with strong market utility.
U.S. lawmakers and regulators are closely watching how stablecoin issuers handle money laundering, cross-border flows, and on-chain monitoring. By highlighting its success in Brazil and elsewhere, Tether is reinforcing its value as both a market leader and enforcement partner.
The Competition for Stablecoin Dominance in the American Market
In the meantime, Tether’s rivalry with Circle will probably surge as stablecoins become more widely used in payment rails and banking. Many institutions prefer Circle because it’s a US-based firm and has a visible reserve structure in the United States.
Nevertheless, the advantages Tether has are that it is a major global player and has more substantial liquidity depth, which could enable it to gain trust within the US market. Although Circle is gaining traction in regulation, it cannot rival Tether in adoption and utility. Tether believes that its next move is to make USDT the most popular digital dollar alternative globally, and it can achieve this by getting access to the U.S. market.