Investigation: Tether Lobbied on GENIUS Act Rules

An investigation found that Tether engaged with U.S. lawmakers and White House advisers during negotiations over the GENIUS Act, pressing for changes to provisions that govern foreign stablecoin issuers, reserve requirements and compliance timetables.

The probe traces contacts by Tether executives and outside advisers with policymakers as Congress worked on the first federal framework for payment stablecoins. Company representatives focused on how overseas issuers would meet U.S. standards, the rules for stablecoin reserves and the transition period for new obligations.

Researchers drew on interviews with current and former U.S. officials, industry participants, court filings, financial disclosures and meeting notes to map Tether’s involvement in discussions over the bill. Records reviewed include filings and notes that show exchanges between private advisers and government officials as the legislation advanced through Congress.

Negotiations changed as lawmakers moved between competing drafts. Key debate topics included whether U.S. regulators should accept reciprocal arrangements with foreign authorities, the scope of anti-money-laundering requirements for non-U.S. issuers, and how long any transition period should last before new rules take effect. The final text of the GENIUS Act contains provisions that differ from earlier drafts and establishes a federal licensing and oversight framework for payment stablecoins.

The investigation identifies contacts involving figures linked to Commerce Secretary Howard Lutnick and David Sacks, who worked as a White House adviser on AI and crypto. It says Tether’s outreach targeted advisers and legislators who shaped language affecting access to the U.S. market for foreign-issued stablecoins and the timeline for meeting reserve and reporting standards.

Tether CEO Paolo Ardoino attended the White House ceremony when the president signed the GENIUS Act. In a post on X after the event, Ardoino thanked the president for the invitation and wrote that the administration’s embrace of digital assets could “help expand USDT’s global adoption while strengthening the U.S. dollar’s international position.” At the time the investigation was published, neither Ardoino nor Tether had issued a public response to the report.