Report: Tether lobbied on GENIUS Act reserve and foreign rules

An investigation published this week reports that Tether and outside advisers engaged in lobbying and private outreach during negotiations over the GENIUS Act, the first federal framework for payment stablecoins.

Investigators reviewed interviews with current and former U.S. officials, industry participants, court filings, financial disclosures and other records to trace meetings and communications between Tether representatives and Washington figures as lawmakers drafted the bill.

The review says Tether’s outreach focused on how overseas stablecoin issuers would meet U.S. requirements, the reserve practices that would be required and the time allowed before foreign issuers had to comply with new rules.

Lawmakers debated reciprocal arrangements with other jurisdictions, anti‑money‑laundering standards and a transition period that would delay enforcement of some requirements for foreign issuers. The investigation reports those topics shifted during the bill’s drafting.

According to the review, several provisions in the final GENIUS Act differ from earlier congressional proposals, including wording that affects the conditions under which foreign‑issued stablecoins may continue to circulate in the U.S. market and the schedule for reserve and reporting obligations.

The investigation identifies contacts between Tether and identified political figures, including Commerce Secretary Howard Lutnick and White House adviser David Sacks, and describes meetings and private discussions involving Tether executives and outside advisers as legislators refined legislative text.

Tether CEO Paolo Ardoino attended the White House signing ceremony for the GENIUS Act. He posted on X that he was grateful for the invitation and that the administration’s approach to digital assets could expand USDT adoption globally while reinforcing the U.S. dollar’s role.

At the time the investigation was published, neither Ardoino nor Tether had issued a public response. Lawmakers, regulators and industry participants spent months negotiating the GENIUS Act before it reached its final form.