Tether, the largest stablecoin issuer globally by market share, has announced its commitment to adhere to the US stablecoin regulation known as the GENIUS Act.
The newly established regulatory framework will affect both of Tether’s stablecoin offerings: the highly utilized USDT and its newer US.-asset-backed counterpart, USAT.
USDT to Comply with GENIUS Act
Bo Hines, Tether’s US Operations Lead, confirmed this initiative during a press conference held on Tuesday at the Korea Blockchain Week (KBW2025) in Seoul.
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“I believe that both USDT and USAT will adhere to the same compliance standards set forth in the GENIUS Act,” Hines stated at the conference.
BeInCrypto attended the event, where Hines indicated that compliance with the GENIUS Act positions Tether to collaborate more effectively with US financial institutions and regulators in the future.
Tether recently introduced a new stablecoin brand, USAT, distinct from its well-known USDT. The company mentioned that USAT was launched in response to the US government’s adoption of the GENIUS Act, which serves as a comprehensive framework for stablecoin regulation.
Following the introduction of USAT, Tether appointed Hines, a former Executive Director of the White House’s Digital Asset Advisory Committee, to spearhead its US operations.
This has led to speculation that USAT is aimed specifically at the US market, while USDT will continue to cater to the global audience. USDT has previously encountered regulatory hurdles in various countries, notably being effectively banned from Europe after the MiCA law’s enforcement.
However, Tether dismisses this speculation. Hines anticipated that USDT will also comply with the GENIUS Act, referencing the law’s reciprocity clause. He remarked, “We expect the US to extend reciprocity to Tether International.”
Article 18 of the GENIUS Act features a reciprocity clause, which permits stablecoin issuers from nations with regulatory frameworks akin to that of the US to distribute stablecoins within the United States.
Hines also encouraged other nations, such as South Korea, to adopt the US regulatory model. “I want to advise other regulatory frameworks, including Korea, to follow what the US has established,” he stated. “We are very proud of what we have developed… this is a clear and robust framework that we are continuing to innovate with through various technological endeavors,” Hines added.
