Tether Mints $3B USDT as GENIUS Act Boosts Ripple’s RLUSD

Sean Williams
Tether

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Key Takeaways:

  • Tether minted $3B USDT in 24 hours, raising concerns of artificial market support amid Bitcoin price volatility.
  • The GENIUS Act introduces strict reserve and audit requirements, potentially disrupting Tether’s dominant market position.
  • Ripple’s RLUSD and Circle’s USDC are positioned to benefit, thanks to regulatory compliance and institutional support.

Tether has minted $3 billion in new USDT over the past 24 hours, raising questions about market manipulation and future compliance. This massive issuance comes at a pivotal moment for the stablecoin sector, just as the U.S. government advances the GENIUS Act — a bill that could redefine which digital dollars are allowed to operate in the country.

Tether Faces Scrutiny as GENIUS Act Gains Momentum

According to data from Lookonchain, Tether added another $1 billion in USDT this morning, bringing the daily total to $3 billion. While the company hasn’t disclosed the exact reasoning, analysts suggest the minting spree could be aimed at shoring up liquidity or supporting Bitcoin amid volatile price swings.

The timing couldn’t be more crucial. The GENIUS Act — recently approved by the House in a procedural vote — mandates full reserve backing, public audits, and U.S.-based licensing for all stablecoin issuers. If enforced, these rules would pose a direct challenge to Tether, whose reserves include a controversial mix of crypto assets, precious metals, and unaudited attestations.

RLUSD and Circle Stand to Benefit From New Regulations

As regulators crack down on shadow stablecoins, Ripple’s RLUSD is emerging as a compliant alternative. Backed by BNY Mellon and the U.S. Treasury, RLUSD has applied for a national trust bank charter and a Federal Reserve master account — moves that could grant it first-mover advantage if the GENIUS Act becomes law.

Crypto analyst Jacob King warned that Tether’s weekly USDT minting could be artificially inflating Bitcoin’s value. He cautioned that a “magnificent crash” could follow if capital migrates en masse to regulated stablecoins like RLUSD or Circle’s USDC.

Circle, which already adheres to stringent financial reporting standards, saw a 34% stock price jump after the GENIUS Act passed the Senate. That market reaction underscores investor appetite for compliant, U.S.-regulated digital assets.

Also Read: Tether Phasing Out USDT on Five Blockchains, Including Omni and Algorand

U.S. Regulation May Trigger a Stablecoin Power Shift

With Tether holding roughly 66% of the global stablecoin market — currently valued at $156 billion — any misstep in adapting to new U.S. rules could open the floodgates for RLUSD and USDC. The GENIUS Act includes a grace period of 18 months to 3 years, giving companies time to comply, but the pressure is mounting.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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