- Revised GENIUS Act boosts AML oversight for foreign stablecoins.
- Tether faces new regulatory standards.
- DeFi sector adjustments expected.
U.S. Senate revised the GENIUS Act on May 1, 2025, to enhance AML compliance for foreign stablecoins like Tether, affecting DeFi.
The GENIUS Act’s revision highlights increasing U.S. regulatory influence over international cryptocurrency transactions, impacting stablecoin market operations immediately.
Bill S.1582 and Its Implications
Senator Bill Hagerty spearheaded bill S.1582, targeting stablecoin regulation. Revised provisions now subject foreign stablecoin issuers like Tether to U.S. jurisdiction, impacting how these entities engage with U.S. users.
DeFi providers face potential operational adjustments due to regulatory changes. The bill expands asset qualifications for stablecoins, potentially reducing market critics’ concerns about reserve backing allegations.
“The inclusion of foreign stablecoin issuers under U.S. regulatory jurisdiction signals a transformative change in how we approach digital currencies on a global scale.”
Immediate market reactions include potential shifts in the $150 billion stablecoin sector, primarily affecting Tether’s operational model. Regulatory compliance could reposition Tether within financial markets.
Financial implications encompass geopolitical pressures as U.S. legislation now extends beyond borders, compelling international compliance with U.S. financial standards.
Potential Outcomes and Future Legislation
Potential outcomes involve stricter regulatory adherence by foreign entities serving U.S. users, setting precedents for future legislation. The GENIUS Act could transform the global cryptocurrency regulatory landscape.
