WSJ: The GENIUS Act Could Force Tether to Undergo Audits, Making It the "Biggest Loser"

The upcoming GENIUS Act in the US Congress will bring stablecoins into the financial mainstream, but the bill requires stablecoin issuers to back their tokens with safe assets such as cash and short-term US Treasuries. Large issuers must also publish audited annual financial statements. This poses a significant challenge for Tether, the issuer of USDT, which is currently partially backed by Bitcoin and gold and has long refused to fully disclose its financial details.
Scott Armstrong, a former federal prosecutor who has handled crypto cases, noted, “This could result in Tether being unable to continue operating in the United States.” Analysts believe the GENIUS Act will force Tether to undergo audits, making it the “biggest loser.” As of now, Tether representatives have not responded to requests for comment. (The Wall Street Journal)