Circle's US Trust Bank bid and new US stablecoin regulations pose a significant threat to Tether (USDT) amidst stablecoin competition.
Circle's application to become a US national trust bank highlights a potential shift in stablecoin dominance from USDT to USDC, as the GENIUS Act could favor compliant stablecoin issuers. Circle's move signals intent to align with US regulations and strengthen its market position.
Source: Blockchain News
The proposed GENIUS Act could reshape the stablecoin market by imposing strict regulations on issuers like Tether (USDT). It requires adherence to U.S. standards, sufficient reserves held in U.S. financial institutions, and monthly reserve reviews, potentially challenging Tether's current operations.
Source: Stock Titan
ALT5 Sigma has launched a stablecoin management solution for U.S. institutions, supporting integration of stablecoins like USDT into enterprise systems. The platform facilitates real-time payments and streamlined treasury functions, aligning with regulatory standards outlined in the GENIUS Act.