Tether is interpreted by allegations of incomplete reserves and rumors! The new version of the US Genius Act is to be under USDT

Tether, the world's largest stablecoin issuer, has been evading allegations of incomplete reserves and rumors, but the new version of the GENIUS Act seems ready to include Tether in the U.S. jurisdiction, and even if the company is not registered in the U.S., it must be regulated. Some experts predict that the Senate may vote again at the end of this month to debate the stablecoin bill.

The new GENIUS Act, Tether, cannot escape?

The new version of the GENIUS Act seems ready to include Tether in the U.S. jurisdiction, and even if the company is not registered in the U.S., it must be regulated.

Although Tether CEO Paul Ardoino recently said that Tether plans to launch new stablecoin products in the United States by the end of this year or early next year. He stressed that Tether is actively working with law enforcement agencies to seek regulatory support, and Tether is developing a product for the United States that is different from existing USDT to meet U.S. market regulation and needs.

But is there really a way for USDT to bypass supervision?

How is the new GENIUS Act different from the old one?

Last Thursday (May 8), the Senate tried to start a formal debate on a new revision of the stablecoin bill.

Here are the main differences between Unchained's new version of the bill and previous versions.

• Sponsored by the Republican Party only

The new bill is still called the GENIUS Act, but with the new bill number S.1582, the two Democratic co-sponsors who canceled the bill - Sen. Kirsten Gillibrand and Sen. Angela Alsobrooks, including only Republican sponsors, Sen. Bill Hagerty, and three other co-sponsors - Sen. Tim Scott, Sen. Cynthiamis and Sen. Dan Sullivan - are all Republicans.

Since the bill is currently only initiated by the Republican Party, it could impact the prospect of the bill’s success in the Senate unless one or more Democrats jointly initiate the bill.

• Added "extraterritorial jurisdiction"

The new GENIUS Act adds the concept of “extraterritorial jurisdiction”, which means that if stablecoin issuers are outside the United States but aim to serve U.S. citizens, they must comply with these stablecoin regulations.

• DeFi participants are not included

The newly revised definition adds an exclusion list for the proposed law. The March edition noted that the proposed law does not apply to the "decentralized ledger agreement" or blockchain, nor does it apply to developing, operating or engaging in business developing blockchain or self-hosted software interfaces. The release Friday now includes exclusion of immutable and self-hosted software interfaces; development, operation or business that validates transactions or operates decentralized ledger nodes; or participates in liquidity pools or other similar mechanisms to provide liquidity for peer-to-peer transactions. The purpose of these changes is to protect DeFi participants from being involved.

• DASP has a three-year transition period

In previous versions of the GENIUS Act, digital asset service providers were prohibited from offering payment stablecoins that were not issued by licensed payment stablecoins issuers, while licensed payment stablecoins issuers were limited to licensed issuers of 1:1 reserve-backed stablecoins. Exchanges such as Coinbase and Binance, as well as custodians such as BitGo, will also be regulated by this new stablecoin legislation.

A new bill, announced on Friday, would give companies of this type three years to comply with the requirement, during which time Coinbase, for example, must remove decentralized stablecoins such as Dai from the list.

• Grant the Minister of Finance Limited Safe Harbor Powers

It grants the Finance Minister limited safe harbor powers to provide regulatory flexibility for small or experimental projects, but also allows unilateral action in an "emergency situation", which some may consider as excessive executive power.

Some experts predict that the Senate may vote again at the end of this month to debate the stablecoin bill.

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