Galaxy Head of Research Alex Thorn believes that the genius action could prefer Tether by having it work under relatively flexible circumstances.
Thorn rated That the bill would open a path for Tether to register us, but is not necessary to do this to continue activities.
Limited restrictions for offshore -mittenten
Based on the current text of the account, if Tether chooses not to register under the new framework, this would not break any laws.
According to the current language of the bill, the primary restrictions on non-registered Stablecoin emissioners such as Tether interbancarial settlement bans would include and bring their tokens to the market as “stablecoins” in the US.
Thorn said that the first limitation is currently not an important problem for Tether, but could influence future acceptance in institutional financing.
The second restriction, who was reportedly introduced as a change during a recent session from the Senate Bank Committee, would not want to advertise Tether for USDT as a stablecoin within the American market, but would not stop being traded with the onshore.
The Genius Act proposes a regulation framework for Stablecoins and defines rules for issue and supervision. The Regulation includes a requirement of 1: 1 reserves consisting of US dollars, insured bank deposits or short -term accounts.
The Senate banking committee approved the bill on 13 March with dual support. It is now clear for a complete senate voice.
Registration paths
The Genius Act seems to offer Tether a clear option to register as a stablecoin emittent in the US, probably through the office of the competent of the currency (OCC). If it chooses this route, Tether can fully register or create a subsidiary that issues a conforming version of the token.
However, if Tether does not register, it can still work in the US if it adheres to the compliance requirements set by the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FINCEN), which it already does.
Thorn added that the bill offers important clarifications with regard to anti-money laundry provisions. The American treasury will only designate a foreign, non-registered issue as a non-compliance if it does not meet legal orders to freeze or grab assets.
This designation would not be automatically for all non-registered Stablecoin expenditure. Tether has a history of compliance with such orders and has so far frozen at least 2,150 addresses, which suggests that it would not be immediately classified as non-compliance under the genius law.
Additional limitations
The analyst also emphasized new changes to the account that introduce further restrictions on offshore, non-registered Stablecoins.
In particular, Stablecoins would not be treated by entities that are not registered under the framework as kasequalents for accounting purposes.
They would not be eligible for margin or cash equivalence treatment by real estate agent dealers, SWAP dealers, Futures Committee of Traders (FCMS) or Derivaten Clearing Organizations (DCOs).
Thorn repeated that these measures would limit the financial and institutional use of non -registered Stablecoins, but would not connect their existence or prevent trade within the American market.
