• According to analysts, the GENIUS Act may allow Tether to operate with some lighter conditions.
• The US Senate Banking Committee has discussed and voted on this bill.

The US Stablecoin Bill, the GENIUS Act, is currently bringing significant benefits to Tether's USDT in its current form, according to policy observers who have evaluated this package so far.

In fact, according to Alex Thorn, Head of Research at Galaxy Digital, Tether now has the flexibility to register in the US or operate offshore without facing serious consequences. He stated,

"In its current form, the GENIUS Act is very good for Tether. They can register domestically, but if not, they're just banned: using USDT for payments between banks and advertising USDT domestically as a 'stablecoin'"

What is the future of Tether?

Thorn added that Tether has complied with most of the terms and can operate smoothly in the US.

"If they don't register, however, they can still exist and be traded domestically as long as they comply with OFAC/FinCEN BSA orders (which they have been complying with today)."

However, the CEO believes that additional restrictions may force the company to establish a US subsidiary if they do not meet certain requirements.

"I think they either register and meet collateral requirements, or they'll open a subsidiary with a replacement version of USDT that meets all requirements and use that currency in the US."

For his part, financial lawyer Scott Johnsson reiterated Thorn's opinion, emphasizing that offshore stablecoin issuers like Tether will increase the demand for US Treasury bonds (debt).

"Overall, I think it's balanced well in allowing offshore issuers to continue to grow (absorbing Treasuries) while leveling them with domestic US issuers."

A similar view was also echoed by Tether's CEO, Paolo Ardoino, in a recent interview with Bloomberg. He stated,

"USDT is representing the last bastion supporting the USD in emerging markets as elsewhere there is a pushback from BRICS countries against the USD."

If the bill allows Tether, it could be a major relief, especially after a concerning report from JPMorgan hinting that this issuer may be banned in the US under new stablecoin regulations.

The GENIUS Act has been marked up and voted on in the Senate by the Banking Committee on March 13. Commenting on this update, Tim Scott, Chairman of the Senate Banking Committee, said,

"This (the GENIUS Act) is about keeping innovation and opportunity on US soil instead of pushing it overseas."

Meanwhile, the market size of USDT has reached a record high of $143 billion amid growing interest in stablecoins and the European Union's delisting.