"The Act requires licensed stablecoin issuers to hold liquid reserves such as cash and U.S. Treasuries, publish monthly disclosures, and submit to federal or state supervision. At the same time, Congress shelved a federal central bank digital currency. Supporters saw this as a victory for innovation, but critics called it a quiet federalization of private money. The United States no longer needs to issue its own digital dollar. It has simply delegated that function to private issuers operating under oversight."
"The biggest beneficiary of this new framework is Tether Limited, whose USDT token dominates global stablecoin supply. In its Q2 2025 attestation, Tether Limited reported a net profit of approximately $4.9 billion and total exposure to U.S. Treasuries exceeding $127 billion. Treasury bills and reverse repo holdings. Its balance sheet showed nearly $120 billion in Treasuries, making Tether one of the world's largest private holders of U.S. government debt."
"Tether, issuer of USDT, earned record profits and became one of the largest private holders of U.S. Treasuries. The GENIUS Act in the U.S. gave private stablecoin issuers a legal framework while stalling a government issued CBDC. The company's cooperation with regulators and law-enforcement shows how stablecoins function as compliance rails, not as alternatives to them. Many Bitcoin advocates now align with Tether's ecosystem, unintentionally helping extend the fiat system they claim to resist."
When the GENIUS Act became law on 18 July 2025, licensed stablecoin issuers were required to hold liquid reserves like cash and U.S. Treasuries, publish monthly disclosures, and submit to federal or state supervision, while Congress shelved a federal central bank digital currency. The law effectively delegated a digital-dollar function to regulated private issuers. Tether Limited's USDT benefited, reporting about $4.9 billion net profit in Q2 2025 and holding exposure to U.S. Treasuries exceeding $127 billion, with nearly $120 billion on its balance sheet. Custody of those assets rests with Cantor Fitzgerald. Tether's cooperation with regulators shows stablecoins operating as compliance rails, and many Bitcoin advocates now participate in Tether's ecosystem, reinforcing the fiat financial system.
Read at Bitcoin Magazine
Unable to calculate read time
Collection
[
|
...
]