Tether and Circle Respond to the GENIUS Act

Minutes after President Trump signed the GENIUS Act into law, the CEOs of the world’s two largest stablecoin issuers, Tether and Circle, laid out their compliance plans with the new legislation.

Tether’s Commitment to Compliance

Paolo Ardoino, CEO of Tether, the leading stablecoin issuer, emphasized the need for compliance with the GENIUS Act’s regulations for foreign stablecoin issuers. He affirmed Tether’s intention to ensure that USDT, its flagship dollar-pegged token, can continue trading in the United States. Issued by Tether from El Salvador, Ardoino stated, “We’ll be working very, very hard to make sure we comply with the foreign issuer pathway within the GENIUS Act.”

The GENIUS Act mandates foreign issuers to adhere to strict anti-money laundering laws and undergo detailed auditing of reserves, though Tether has not yet completed a full audit. Ardoino assured that the company plans to adopt this process in the near future, stating, “We have three years to make sure this process can go through properly.”

In previous discussions, Ardoino mentioned that Tether was considering creating a U.S.-specific stablecoin to meet American regulatory needs, particularly amidst legislative discussions. He affirmed Tether’s goal of producing a U.S.-based stablecoin while also gaining GENIUS approval for USDT. This dual offering would cater to distinct clientele needs in America, particularly for expatriates who use USDT for remittances.

Circle’s Stance on Regulatory Compliance

On the other side is Circle, the second-largest stablecoin issuer, with its CEO Jeremy Allaire expressing confidence in his company’s established regulatory compliance. When informed about Tether’s compliance plans, Allaire stated that the GENIUS Act would further validate Circle’s compliance reputation.

“Allaire highlighted that because of their history of regulatory adherence and public audits, top institutions partner with Circle, and the new law would accelerate their operational integration into the mainstream financial system.

Despite being rivals, both Ardoino and Allaire shared the stage at the GENIUS Act signing ceremony at the White House but did not acknowledge each other afterwards.