Tether Moves Ahead With U.S.-Only Stablecoin Amid Policy Shifts and Political Support

• Tether plans to launch a US stablecoin to target domestic users and meet rising demand for blockchain payments.
• The company aligns with lawmakers and law enforcement to gain support for tighter crypto regulations in the US.
• Tether faces new competition as politically backed stablecoin projects enter the growing US digital asset market.

Tether is preparing to introduce a U.S.-only stablecoin, aiming to serve domestic users apart from its global USDT product. The execution date depends on upcoming crypto legislation which could begin late 2025 or could start early 2026. Lawmakers are making a strategic step by working towards establishing better regulatory frameworks for digital assets.

Legislative Momentum Builds for Stablecoin Oversight

Recent political backing for digital assets is shaping the environment. The GOP-led GENIUS Act encourages cooperation between stablecoin issuers and law enforcement. Tether’s current compliance model already supports such cooperation. Its leadership is aligning closely with regulatory trends as scrutiny increases.

Tether has stepped up its U.S. lobbying efforts. The firm has participated in private events on Capitol Hill and met directly with lawmakers. These engagements aim to influence ongoing debates around crypto regulation. Tether’s top executives are working to shape policies that may define the future of U.S.-based digital finance.

Domestic Market Becomes Central to Tether’s Plans

The planned U.S. stablecoin targets the growing demand for blockchain payments within the country. Tether views the domestic market as an opportunity for expansion under evolving laws. Unlike its global counterpart, this coin will serve only U.S. residents. The firm has built its legal and technical foundation to fit within stricter domestic frameworks.

Tether also promotes transparency and audit readiness. It recently released financial records confirming holdings of nearly $120 billion in U.S. Treasuries. Cantor Fitzgerald manages these assets and maintains political ties within the U.S. government.

Strong Financial Backing Bolsters Tether’s Position

Tether reported $5.6 billion in excess reserves by the end of the first quarter of 2025. Though down from $7 billion at year-end, the reserves still outpace many other issuers. The company also claims over $7 billion in additional equity, strengthening its financial base further.

The firm says its compliance tools exceed those of traditional banks. This claim supports its broader push for approval under stricter oversight. Tether aims to prove it can operate within a highly regulated U.S. market. It continues to include law enforcement cooperation in its core business strategy.

New Competition Emerges as Politics Drive Market Growth

Other players are also entering the U.S. stablecoin space. Eric and Donald Trump Jr. plan to launch a coin under World Liberty Financial . This could lead to political and market competition in the stablecoin sector.

Despite its El Salvador base, Tether sees the U.S. as its next strategic focus. Congress is increasing scrutiny of crypto firms, especially those offering domestic stablecoins. Tether is now focused on full integration with U.S. policy and regulatory expectations.