USDT Shows Signs of Recovery Amidst Market Turmoil; Potential for New U.S.-Domiciled Stablecoin

In the volatile world of cryptocurrencies, Tether’s USDT has emerged as one of the few tokens displaying resilience amidst market turmoil caused by tariff news. With potential plans for a new U.S.-domiciled stablecoin, USDT continues to be a focal point in the crypto sphere.

Tether’s USDT Among Crypto Tokens Showing Signs of Recovery

Solana, Ethereum, Ripple’s RLUSD, and Tether’s USDT are among the handful of crypto tokens showing signs of recovery amidst the mayhem caused by tariff news. These tokens have demonstrated resilience despite the overall market decline.

Tether May Launch New U.S.-Domiciled Stablecoin

Tether CEO Paolo Ardoino has stated that Tether has no issue with its flagship stablecoin, USDT, being banned in the United States by new regulatory legislation. To circumvent the potential issue, Tether is considering creating a new U.S.-domiciled stablecoin that will comply with pending American stablecoin laws. Ardoino believes that the main stablecoin is perfected for emerging markets, but a new payment stablecoin tailored for the U.S. market is being considered.

The Stablecoin Regulation Wars: Can Tether Stay on Top?

2025 has been dubbed ’the year of the stablecoin,’ with stablecoins surging in popularity globally, especially under the new crypto-friendly U.S. administration. Leading fiat-backed stablecoins USDT and USDC hold 92% of the market share. Tether, the issuer of USDT, has grown to a market cap of over $140 billion, supporting more than 400 million users, particularly in underbanked regions. However, Tether’s dominance is facing increasing competition from well-established and new competitors eager to grab market share. Additionally, new regulatory hurdles, particularly in markets like the European Union, are adding pressure. This raises the question of whether Tether can hold onto its place as the dominant stablecoin amid growing competition and regulatory challenges.