Tether’s USDT stablecoin has achieved a record $160 billion in circulation, underscoring its dominant position in facilitating global cryptocurrency transactions and liquidity.
The milestone coincides with heightened regulatory scrutiny, including the proposed GENIUS Act in the United States. If enacted, this legislation could ban unverified stablecoins, compelling Tether to adhere to stricter compliance standards that may disrupt its operational framework.
Transparency concerns persist as Tether holds approximately $100 billion in U.S. Treasury bonds without independent real-time proof-of-reserves verification, fueling market skepticism about its backing integrity.
Bitcoin’s market volatility further threatens USDT’s stability, given its critical role as a primary trading pair and liquidity source in decentralized finance. Competitive pressure from alternatives like Circle’s USDC continues to challenge Tether amid evolving regulatory and market landscapes.