Tether’s USDT Hits $160B Market Cap Amid GENIUS Act Threat
Tether’s USDT stablecoin has reached a record $160 billion market cap, driven by strong demand in emerging markets. Demand for Tether USDT remains robust as active users jumped from 2.8 million in 2020 to 450 million today, and monthly transfer volume soared to $1 trillion, underlining USDT’s role as a key liquidity backbone.
Meanwhile, the US House is set to revisit the bipartisan GENIUS Act, which would mandate third-party reserve audits for all stablecoin issuers. Failure to meet audit requirements could bar stablecoins from US operations. Initial attempts to pass the GENIUS Act failed on July 16, but GOP members have pledged a standalone vote on July 17.
Traders should monitor USDT market cap and on-chain volume trends as indicators of liquidity. Ongoing regulatory scrutiny and potential competition from regulated rivals like Ripple’s upcoming RLUSD token could reshape stablecoin dynamics and impact market stability.
Neutral
The news that Tether’s USDT stablecoin has hit a $160B market cap signals strong demand and deep liquidity, which is bullish for trading activity in the short term. However, the looming GENIUS Act and tighter reserve audit requirements introduce regulatory uncertainty that could restrict USDT supply and market operations. In the long term, compliance hurdles and competition from regulated alternatives like RLUSD may weigh on USDT’s dominance. This mix of robust growth and regulatory risk points to a neutral impact on USDT’s market price as traders weigh both factors.