Tether’s USDT stablecoin has the potential for a significant expansion, potentially reaching a market cap of approximately $1.6 trillion, subject to meeting new federal regulatory mandates.
This potential tenfold growth, from its current circulation exceeding $160 billion, is contingent upon Tether aligning with the requirements of the newly enacted GENIUS Act.
The legislation empowers the Federal Reserve to license and supervise stablecoin issuers like Tether, imposing critical conditions including full reserve backing of issued tokens, regular audits, and strict adherence to Anti-Money Laundering (AML) compliance standards.
Should Tether successfully navigate these rigorous regulatory demands and secure the necessary U.S. license, the increased USDT supply could significantly deepen market integration and enhance liquidity and stability across the broader cryptocurrency ecosystem.
The GENIUS Act sets a higher standard for stablecoin issuers, emphasizing transparency and robust reserve backing, which could shape the future landscape of dollar-backed digital assets.