USDT Prepares for Regulatory-Compliant Future with New Stablecoin Plan

In the ever-evolving landscape of cryptocurrencies, Tether (USDT), one of the largest stablecoins by market capitalization, is navigating the regulatory waters with a strategic shift. With the U.S. Securities and Exchange Commission (SEC) providing clarity on the regulatory framework for stablecoins, Tether is poised to introduce a new stablecoin that adheres to these guidelines.

Tether Plans New Stablecoin Amid SEC Guidelines

Tether is considering shifting its strategy following the SEC’s latest update on stablecoins. The agency clarified that certain stablecoins, termed as ’covered stablecoins,’ do not fall under the definition of securities if they meet strict requirements. These assets must maintain a one-to-one peg with the US dollar, be backed by highly liquid, low-risk assets, and be redeemable on demand at full value. They are marketed as a stable, quick, reliable, and accessible means of transferring or storing value, not as investments.

Tether CEO Considering US-Domiciled Stablecoin Amidst USDT Ban Risks

With the growth of the cryptocurrency industry, several jurisdictions have begun creating stablecoin-specific regulations. These new laws could impact several businesses, with Tether facing setbacks in certain markets. Earlier this week, Binance delisted USDT from its European sites due to non-compliance with the European Union’s new requirements for stablecoin issuers. Ardoino, the CEO of Tether, stated that despite investments in multiple European companies launching grassroots dollar- and euro-backed stablecoins compliant with EU regulations, he foresees a future where USDT is no longer a major player in either the United States or Europe.

Stablecoin Supply Hits $233B in April: USDT and USDC Dominate Market

The total stablecoin supply hit $233.47 billion by the first week of April 2025, according to data from IntoTheBlock. USDT leads with a market cap of $144 billion, capturing 63% of the total stablecoin market share. USDC, while trailing, has reclaimed momentum. The stablecoin sector saw record-breaking growth in the first quarter of 2025, with the market cap rising 9.61% between January and April. This growth is attributed to rising institutional adoption, increased demand for on-chain liquidity, and the centralization of market power between two dominant issuers: Tether (USDT) and USD Coin (USDC). USDT’s status as crypto’s de facto liquidity engine is further solidified by its commanding market cap.