Regulatory Winds: USDT Price and Compliance Challenges under the Genius Act

1. Review of USDT Price Trends

As of June 26, 2025, the USDT to USD exchange rate remains around $1.000, with no significant fluctuations. Even in the context of tightening global regulations, its market capitalization still reaches approximately $156.8 billion, with trading volumes in the hundreds of billions of dollars, fully reflecting the strong demand in the stablecoin market.

2. Genius Act Main Content

The Genius Act is an important piece of legislation recently passed by the U.S. Congress, requiring all stablecoin issuers to:

• Invest all reserve assets in cash and U.S. Treasury bonds;
• Disclose audited financial reports to the public annually;
• Register with US regulatory agencies or obtain a license from an equivalent regulatory jurisdiction.
  The bill aims to strengthen the transparency and security of stablecoins, preventing them from being used for money laundering and sanctions evasion.

3. Analysis of the Impact on Tether

As the largest stablecoin issuer by market capitalization, Tether has long been controversial due to the lack of transparency in its partial reserve asset allocation. If the Genius Act is truly implemented, Tether will need to significantly adjust its asset allocation structure and increase its auditing expenses, which may affect its business promotion in the U.S. market in the short term and put some pressure on the price peg of USDT. It is necessary to pay attention to the potential risks brought by the rising compliance costs in the future.

4. Tether’s Internationalization Strategy and Market Shift

In response to tightening regulatory scrutiny in the US market, Tether has announced plans to focus on expanding into emerging markets such as Asia and Latin America, and has signed a strategic cooperation agreement with the African fintech platform Shiga Digital in June 2025 to provide a diverse range of products, including OTC, foreign exchange, and on-chain financial services. This shift is expected to mitigate regulatory risks and maintain the circulation status of USDT globally.

5. Outlook and Suggestions for Beginners

1. Stay updated on policy dynamics: The regulatory framework for stablecoins is rapidly evolving, and newcomers need to obtain the latest legislative information through official channels.
2. Prudent assessment of reserve compliance: It is preferable to choose stablecoin products that publish independent audit reports and have a higher level of compliance.
3. Configure diversified assets: In addition to USDT, consider products with higher compliance such as USDC and BUSD to diversify legislative risks.
4. Long-term perspective: Do not blindly pursue short-term arbitrage; it is recommended to build a robust digital asset portfolio with liquidity and compliance as the core.