WSJ: Tether may become the biggest loser of the GENIUS Act due to "incomplete compliance".

On June 25, the Wall Street Journal reported that the GENIUS Act, which is about to be passed by the U.S. Congress, will bring stablecoins into the financial mainstream, and this legislation has sparked strong interest from start-ups, banks, and even giants such as Walmart. However, under the GENIUS Act, stablecoin issuers are required to reserve safe assets such as cash and short-term US Treasuries, and large issuers are required to publish audited annual financial reports. This poses a serious challenge to Tether, which accounts for 66% of the stablecoin market ($156 billion in circulation), whose USDT is currently partially backed by Bitcoin and gold, and has long refused to fully disclose financial details. Scott Armstrong, a former federal prosecutor who has handled crypto cases, noted that "this could result in Tether not being able to continue operating in the United States." A Tether representative did not respond to a request for comment. CEO Paolo Ardoino has said that he may issue a localized stablecoin to maintain his U.S. business. The bill sets a transition period for compliance: the Senate version grants a three-year grace period, while the companion bill under consideration in the House requires 18 months to be met before it is signed into law by President Trump, who supports the bill.