TLDR
- Tether minted $3 billion in USDT over the past 24 hours, increasing liquidity and supporting Bitcoin’s price movements.
- The GENIUS Act proposes stricter regulations for stablecoins, including full reserve backing and regular audits.
- Tether may face challenges complying with the new rules under the GENIUS Act, which could impact its U.S. operations.
- Ripple’s RLUSD is positioned to benefit from the GENIUS Act’s regulatory-friendly approach and full backing by U.S. Treasury reserves.
- The GENIUS Act could cause billions in capital to flow from Tether to more regulated stablecoins like RLUSD.
Tether has minted a significant $3 billion in USDT over the past 24 hours, sparking speculation across the cryptocurrency market. The new surge in minted tokens comes as the U.S. government pushes forward with the GENIUS Act, a regulation that could reshape the stablecoin landscape. The act may also provide an opening for Ripple’s RLUSD to replace Tether’s dominance in the market.
Tether’s $3 Billion Minting Sparks Market Movements
Tether minted an additional $1 billion in USDT today, bringing its total to $3 billion in just one day. This move has fueled speculation that Tether is increasing its liquidity to support Bitcoin’s recent price movements. Some market analysts believe the surge in minted USDT is strategically designed to stabilize Bitcoin ahead of the impending regulatory changes.
Tether(@Tether_to) just minted another 1B $USDT!
That’s 3B $USDT minted in under 24 hours — massive funds are pouring into the crypto market!https://t.co/Hpn4LisKe2https://t.co/jIdUKljlfK pic.twitter.com/gVJRGx5dPl
— Lookonchain (@lookonchain) July 17, 2025
Despite Tether’s efforts to maintain its market share, its current reserve practices have attracted scrutiny. The company’s use of Bitcoin, precious metals, and partial attestations to back its reserves is a key point of concern. The GENIUS Act, which calls for full reserve backing and regular audits, may force Tether to alter its practices or exit the U.S. market significantly.
Tether currently dominates the global stablecoin market, with $156 billion in circulation and roughly two-thirds of the market share. However, if the GENIUS Act passes in its current form, Tether may struggle to comply with the new rules. The legislation requires that stablecoin issuers hold only cash or safe short-term assets and provide full audits, which could challenge Tether’s current business model.
GENIUS Act Could Make Way for Ripple’s RLUSD
As Tether faces mounting regulatory pressure, Ripple’s RLUSD is positioning itself to become a major competitor. The stablecoin, which is fully backed by U.S. Treasury reserves, has already gained a significant edge by applying for a national trust bank charter. Ripple also announced that BNY Mellon would serve as the official custodian of RLUSD’s reserves, offering added security and transparency.
If the GENIUS Act is passed into law, RLUSD will be one of the first stablecoins to comply fully with the new regulatory framework. This positions RLUSD to benefit as billions of dollars may shift from Tether to regulated stablecoins. Ripple’s proactive regulatory approach could make RLUSD an attractive alternative for investors seeking more secure options in the U.S. market.
While Tether has minted billions of new USDT to maintain its dominance, the push for more stringent regulations could shift the market. Analysts suggest that RLUSD is poised to take advantage of this regulatory transition.
