Proposed US Bills May Force Tether to Restructure Its Reserves
Tether Holdings Limited, the largest stablecoin issuer, may need to restructure its reserves due to new proposed U.S. Congress bills aimed at regulating stablecoins. The two bills are:
- Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act
- Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act
The STABLE Act seeks stricter state oversight, while the GENIUS Act enforces federal regulation with broader reserve asset options. Key points include:
- Only 66% of Tether’s reserves comply with the STABLE Act.
- 83% compliance under the GENIUS Act.
- Tether holds 83,758 BTC valued over $8 billion as part of its reserves.
If passed, these regulations could compel Tether to sell non-compliant assets, potentially affecting overall market stability and Bitcoin prices. Regulatory pressures extend beyond the U.S., with European regulations like MiCA requiring large stablecoin issuers to keep 60% of reserves in EU banks. Tether's response to these challenges may influence the broader altcoin market.