Genius Act poses major regulatory challenge for Tether

The U.S. Senate’s recently passed Genius Act introduces strict regulations for stablecoin issuers, requiring full asset backing, annual audits and registration with U.S. authorities. The bill could significantly impact Tether, the largest stablecoin issuer with $156 billion in circulation, due to its partial asset backing and limited financial transparency. The legislation includes a grace period—three years under the Senate version and 18 months under the House proposal—and aims to bring stablecoins into mainstream financial use, WSJ reported.