Tether Could Potentially Expand USDT Supply Tenfold Amid New Federal Stablecoin Regulations

Key Points

1. The GENIUS Act empowers the Federal Reserve to license and supervise stablecoin issuers like Tether, mandating full reserve backing, audits, and AML compliance.

2. Tether currently circulates over $160 billion in USDT; a tenfold expansion would increase this to approximately $1.6 trillion, deepening its market integration.

3. The GENIUS Act introduces rigorous compliance demands, requiring Tether to align with U.S. licensing and regulatory standards.

4. Increased USDT supply could enhance liquidity and stability in the cryptocurrency market, but compliance with regulations remains critical.

5. The legislation sets a new standard for stablecoin issuers, emphasizing transparency and full reserve backing, shaping the future of digital dollar-backed assets.