Tether has now minted 160 billion USDT tokens, marking a substantial milestone in the stablecoin’s circulation. However, a few warning signs are leading skeptics to caution about potential turmoil.
If the GENIUS Act becomes law, it could complicate Tether’s ability to act in the United States. USDT is a key piece of the global crypto infrastructure, but an upset might disrupt a shaky and speculative wave of recent growth.
Tether’s USDT Milestone
Tether, the world’s largest stablecoin issuer, has been minting a lot of USDT tokens recently. As rumors of an IPO keep circulating, the firm has signaled big plans for the future by redirecting resources.
Today, this minting spree has reached an unprecedented level, as 160 billion USDT tokens are currently in circulation:
Tether finished this round of USDT creation by minting 2 billion additional tokens earlier today. With strong institutional partnerships and potential assistance from the US government, it seems like Tether’s heading towards a bright future.
Why, then, are several experts warning of a potential crash?
For one thing, impending stablecoin regulation could cause some significant problems. The GENIUS Act is up for a vote today, and seems rather likely to succeed.
As written, it could ban USDT and Tether products from usage in the US. Tether survived an EU ban caused by MiCA regulations, but the US market might be irreplaceable.
Essentially, the GENIUS Act will require Tether to undergo a third-party audit for its USDT reserves, but this has never happened.
The firm made a big show of its $8 billion gold stockpile, and owns around $100 billion in Treasury bonds. Nonetheless, it issues $160 billion worth of USDT, and there’s no guarantee that the firm holds this much capital.
Furthermore, the Bitcoin market is showing an underlying risk, as many corporate BTC holders are severely overleveraged, and a forced liquidation could lead to a cascade of failing companies.
So, any potential challenge to USDT could damage the Web3 economy, even if it’s for the short term.
However, nothing is guaranteed, and it’s highly likely that Tether would find a way to continue issuing USDT in the US. In any case, Circle still holds dominance in the region with its USDC stablecoin.
Overall, depending on a few upcoming developments, it could signal a dangerous and inflationary economic situation.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
