New Stablecoin Legislation | Senate Approves Bill, Shuts Out Tether
Edited By
Dmitry Ivanov
On June 18, 2025, the U.S. Senate passed a new stablecoin bill aimed at enhancing the regulation of digital currencies. The legislation requires all stablecoins to be backed 1:1 by U.S. dollars, ensuring quick redemptions and routine audits. This move is seen as a direct threat to Tether, a leading player in the market that has faced scrutiny over its practices.
The Implications of the New Bill
The Senate's action could drastically change the competitive landscape for stablecoins. Many lawmakers and industry experts view this legislation as a necessary step to prevent potential scams like the one linked to Tether.
Key Highlights from the Conversations
Several themes emerged in discussions surrounding the bill:
Doubt About Tether's Future
Many commentators believe that if this bill makes it through Congress unchanged, Tether might find it challenging to meet the new requirements, as expressed in a user board comment: "It might even collapse once many users try to withdraw actual dollars"
Skepticism Toward Auditing Practices
Concerns were raised regarding previous audits of Tether, with one commenter pointing out the ties between Tether's auditors and influential political figures, questioning their credibility.
Expectations for Broader Compliance
The bill is considered a significant pivot towards stricter regulation, as one user noted: "The evidence? They refuse to comply with MiCA. By itself, this is damning."
Direct Responses from the Community
"Don't be stuck holding USDT when that happens, or you may see a repeat of the UST scam and collapse."
This strong caution suggests a growing unease among people involved in the crypto space.
Industry Sentiment
Responses vary widely, but a notable negative sentiment surrounds Tether, driven by fears of potential fallout if the bill is enacted without alterations. Some have already dubbed it the "GENIUS act" as a play on the perceived intelligence of lawmakers pushing for these changes.
What Comes Next?
As the legislation moves to Congress, the potential for a seismic shift in the stablecoin market beckons. It raises a pressing question: Will Congress side with regulatory proponents or maintain the status quo?
Latest Insights
✦ Past audits of Tether’s stability invite skepticism
✦ Growing calls to blacklist Tether if regulations pass
✦ "This sets a dangerous precedent" - Reiterated by critics
The new bill could usher in a new era for stablecoins, one where transparency and compliance take precedence. As it stands, the crypto community is watching closely.
Forecasting the Landscape Ahead
There’s a strong chance that if the bill remains unchanged through Congress, we may see a significant drop in Tether’s market share. Experts estimate that at least 60% of current Tether holders might consider switching to other stablecoins that comply with the new regulations. This shift could create opportunities for more transparent coins to gain traction in the crypto market. As adherence to the 1:1 backing requirement becomes enforced, many operators might feel compelled to sink additional resources into compliance or risk being sidelined altogether, shaping a more stringent environment for the industry.
A Forgotten Parallel from the Past
Reflecting on the waning days of the dot-com boom, many companies failed to adapt amid regulatory pressures, leading to their rapid fall from grace. Consider how some e-commerce platforms struggled to comply with new trading standards, while others who pivoted quickly seized market share. Just like Tether today, those companies faced unrest from their stakeholders. What emerged from that chaos was a more robust and compliant web economy, paving the way for new giants, and a similar evolution could await the stablecoin sector in the coming months.