Minutes after President Donald Trump signed the GENIUS Act into law on Friday, Paolo Ardoino, CEO of Tether, and Circle’s chief executive each set out how their firms will meet the new rules.
The signing took place in Washington, D.C., and aims to regulate stablecoins under strict anti‑money‑laundering and auditing standards. Both CEOs spoke to reporters within hours of the ceremony. They argued their own companies are best placed to thrive under the new framework.
Tether’s Path for USDT
Ardoino said Tether will use the “foreign issuer pathway” to bring USDT into the US market. USDT, the world’s largest stablecoin with a $161 billion market cap, is issued from El Salvador.
Under GENIUS, any foreign stablecoin issuer must meet tough reserve audits and anti‑money‑laundering checks. Ardoino stressed that Tether will comply fully. “We’ll work very hard to meet every rule,” he said. “Some say we won’t, but that’s not true.”
Currently, Tether publishes quarterly reserve reports but has never done a full independent audit. The GENIUS Act gives issuers three years to complete such an audit.
Ardoino said that Tether has already engaged a Big Four accounting firm to verify its reserves at a 1:1 ratio. He noted that a Trump administration could help expedite the process. This audit, he added, is the company’s top priority.
A US-based Stablecoin
Ardoino hinted that Tether might launch a US-based stablecoin to more directly comply with American regulations. On Friday, he said that the plan is still on track.
The idea is to offer two coins, one under the foreign issuer path (USDT) and one built for the US market from day one. Each token would serve different needs. USDT could be used mainly for sending remittances from the US to other countries, he noted.
Also Read: Tether CEO Predicts 1 Trillion AI Agents Trading In USDT And Bitcoin
Circle’s Compliance Edge
Circle CEO Jeremy Allaire has long pitched USDC as the more regulatory‑friendly option. USDC is already issued in the US and backed by dollar deposits and short‑term treasuries. Circle argues its model fits neatly under GENIUS without extra steps.
Allaire says Circle has the clear lead on compliance, thanks to existing banking partnerships. He told analysts this week that USDC will continue to set the standard for transparency.
Analysts say the two‑coin approach by Tether could shake up stablecoin markets. USDT dominates with over 50% market share, but USDC is growing fast. New rules may narrow the gap if Tether meets all requirements.
Traders and exchanges will watch audit reports closely. The quality of third‑party verification may become the key selling point.
What Comes Next?
Both Tether and Circle now face a clock ticking down to 2028, when full compliance must be proven. Firms will need to file detailed audits and show tight controls against illicit flows.
Regulators will review each reserve report and compliance filing before green‑lighting any token for US trading.