💲 WSJ: GENIUS Adoption Is a Setback for Tether ( #USDT ).
▪The GENIUS Act would impose tough requirements on stablecoins and issuers, which could seriously hurt Tether's position .
▪According to GENIUS, issuers must provide 100% of reserves in liquid assets (cash/government bonds), conduct annual audits, ensure reserve transparency and register in the US.
▪The company primarily backs USDT with volatile assets (BTC, Gold) and does not disclose details of reserves.
▪Moving the headquarters to El Salvador is unlikely to help circumvent American demands.
▪Tether promises to conduct an audit starting in 2017.
▪The only way out for the crypto giant is to create a new stablecoin for the US, or focus on markets outside the US jurisdiction.
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