Investigation: Tether lobbied on GENIUS Act foreign issuer rules

An investigation found that Tether lobbied and engaged with U.S. officials and advisers to influence provisions of the GENIUS Act, focusing on how foreign-issued stablecoins would be treated and on reserve requirements. The inquiry draws on interviews with current and former U.S. officials, industry participants, court filings and other records. It describes a Washington campaign by Tether executives and advisers as lawmakers drafted the first federal framework for payment stablecoins.

The company pressed on several technical points, including how overseas issuers would meet U.S. compliance standards, rules for maintaining reserves backing stablecoins, and the conditions under which foreign-issued tokens could access the U.S. market. Negotiations changed as the bill moved through drafting and discussion. Contested items included reciprocal regulatory arrangements for foreign firms, anti-money-laundering obligations, the length of any transition period before compliance took effect, and timelines for foreign issuers seeking U.S. customers. The final version of the GENIUS Act contains provisions that differ from earlier drafts.

The investigation identifies contacts and conversations involving advisers with ties to the administration, naming Howard Lutnick and David Sacks in its account of those interactions. Paolo Ardoino, Tether’s chief executive, attended the White House ceremony for the GENIUS Act signing and posted on X after the event, thanking President Donald Trump and writing that the administration’s embrace of digital assets could expand USDT’s global adoption and strengthen the dollar’s international position. Neither Ardoino nor Tether issued a public response to the investigation.

The GENIUS Act establishes the first federal regulatory framework for payment stablecoins in the United States. Sponsors and regulators described the law as setting rules for issuers and protecting consumers and the financial system. Industry participants sought clarity on cross-border rules and operational requirements during the drafting process.

Tether issues USDT, a dollar-pegged stablecoin used widely in markets. The investigation details how overseas compliance, reserve maintenance and anti-money-laundering standards were among the specific policy areas debated as lawmakers and industry negotiated the GENIUS Act.