Tether’s $85B Stablecoin Empire Faces US Crackdown: Global Crypto Chaos?
Tether faces US jurisdiction regardless of location, sparking fears of a crypto shake-up.
Tether, the world’s largest stablecoin, is in the US crosshairs. On May 10, 2025, X posts reported that the latest draft of the Genius Stablecoin Bill aims to place Tether (USDT), valued at $85 billion, under US jurisdiction, regardless of its offshore base in the British Virgin Islands. This move, if enacted, could reshape the crypto landscape, as Tether’s USDT underpins countless transactions across global exchanges.
Why is this happening? Tether has long faced scrutiny for its opaque reserves and alleged ties to illicit activities. The US seeks to tighten control over stablecoins, which act like digital dollars, to curb money laundering and ensure financial stability.
What’s the potential impact? For new investors, this signals tougher oversight in crypto. If Tether complies, USDT’s dominance could solidify, boosting user trust. However, resistance or penalties could crash USDT’s peg, roiling markets and altcoins like Ethereum or XRP, which rely on USDT trading pairs. Regulatory clarity might also spur innovation, but short-term volatility is likely. Past US actions, like seizing $9 million in USDT, show enforcement is serious.
What should you do? Stay informed and diversify your portfolio. Stablecoins are key to crypto, but regulatory shifts can spark chaos. Research platforms like Binance or Coinbase for safer options.
Will Tether survive the US clampdown? Share your thoughts below and follow trafy.io for more crypto updates!
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
