Tether Diversifies Amid U.S. Stablecoin Regulatory Threat

Tether, issuer of the USDT stablecoin, is actively diversifying its business and reserve assets in response to mounting U.S. regulatory pressures. The company has partnered with Adecoagro to launch a renewable energy-powered Bitcoin mining project in South America, aiming to stabilize energy revenues and test Bitcoin as a treasury asset. Additionally, Tether has acquired a one-third stake in gold royalty firm Elemental Altus, further backing USDT with tangible assets like gold and Bitcoin. These moves come as U.S. lawmakers advance the GENIUS Act, which would mandate one-to-one reserves in cash and Treasuries, monthly audits, and strict federal oversight—requirements Tether has not historically met. While Tether has posted record profits from investments in U.S. Treasuries, analysts warn that compliance challenges may force it to shift its reserve strategy and possibly cede U.S. market share to competitors like Circle's USDC. The company's future in the U.S. remains uncertain amid these evolving regulations.