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WSJ: GENIUS Act to Force Tether to Accept Audit, Making It the 'Biggest Loser'
Summary: According to reports, the upcoming 'GENIUS Act' in the US Congress will bring stablecoins into the financial mainstream. However, the act requires stablecoin issuers to hold reserves in cash, short-term US bonds, and other safe assets, and large issuers must disclose audited annual financial reports. This poses a serious challenge to stablecoin issuer Tether, whose ...
According to reports, the upcoming 'GENIUS Act' in the US Congress will bring stablecoins into the financial mainstream. However, the act requires stablecoin issuers to hold reserves in cash, short-term US bonds, and other safe assets, and large issuers must disclose audited annual financial reports. This poses a serious challenge to stablecoin issuer Tether, whose USDT is currently partially backed by Bitcoin and gold, and has long refused to fully disclose financial details.
Former federal prosecutor Scott Armstrong, who has handled crypto cases, stated: 'This could lead to Tether being unable to continue operating in the US.' Analysts believe that the GENIUS Act will force Tether to accept an audit, making it the 'biggest loser.' As of now, Tether representatives have not responded to requests for comment. (The Wall Street Journal)
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Link: WSJ: GENIUS Act to Force Tether to Accept Audit, Making It the 'Biggest Loser' [Copy]
