New Regulations Could Challenge Tether and Circle’s Practices

[tradelikepro]

The minting spree comes as lawmakers prepare to tighten stablecoin regulations. The proposed GENIUS Act, for example, could ban stablecoins unless issuers comply with strict rules, including regular third-party audits and full backing with US Treasury bonds.

Neither Tether nor Circle has fully met those standards. Both companies have purchased Treasuries at aggressive rates but not enough to match their expanding token supply.

Until more details emerge, regulatory uncertainty — combined with the unexplained minting — is likely to fuel continued skepticism about the stability and transparency of the two largest stablecoins.

[Nahid10]

️ The latest minting boom arrives just as U.S. lawmakers push tougher stablecoin rules. The GENIUS Act may outlaw tokens without full Treasury-bond backing and third-party audits.

[kelson10]

Stablecoin supply is surging — but the GENIUS Act looms. If passed, only fully audited, Treasury-backed issuers would survive, reshaping the market overnight.