Under a regulatory framework passed last summer, the OCC was granted new powers, including the ability to enforce strict reserve requirements. Under those rules, stablecoin issuers are required to back their products primarily with cash and U.S. Treasuries.
On Tuesday, Tether said its $168 billion stablecoin is “progressing towards GENIUS Act compliance,” but that USAT will meet institutions’ needs in the meantime. It has designated Cantor Fitzgerald as USAT’s reserve custodian and preferred primary dealer.
Decrypt has reached out to Tether for comment.
When Tether unveiled the stablecoin in September, it appointed Bo Hines, the former White House crypto council executive director, as CEO of a dedicated U.S. entity.
Tether CEO Paolo Ardoino told Decrypt in July that his company planned to fully register USDT under the GENIUS Act. Meanwhile, companies like Circle have argued that their approach to compliance positions them as among the main beneficiaries of the legislation.
Tether is hugely popular outside the U.S., but USAT’s debut underscores how the company is trying to strike a balance, while targeting areas where Circle’s USDC is commonly used. Tether's USDT stablecoin is already widely available in the U.S.
“USAT reflects what’s possible when stablecoin issuance is done inside the U.S. banking system,” he said, “under real supervision, with real accountability, at real scale.”
