The new stablecoin GENIUS Act requires that Tether be subject to U.S. jurisdiction regardless of its location.

On May 10, unchained reported that the Senate failed to push the newly revised stablecoin GENIUS bill into the formal debate process on Thursday, with some lawmakers saying they had not seen the text of the bill before voting. According to the latest version obtained by the media on Friday, the biggest change is that as long as it serves U.S. users, foreign publishers such as Tether will be subject to U.S. jurisdiction, regardless of where they are registered. In addition, the core changes in the new GENIUS Act include: · Jurisdictional restructuring: A new "extraterritorial application" clause requires foreign publishers to comply if they are targeting US users (this will end Tether's regulatory ambiguity). Combined with provisions that allow for the expansion of reserve asset types, the bill's tilt towards the company, which claims to be the "seventh-largest holder of U.S. Treasuries"). Extension of the definition of service providers: The inclusion of developers, validators, and self-custody wallets in the "digital asset service provider" has triggered a new controversy over whether DeFi protocols are required to comply with the Bank Secrecy Law and anti-money laundering regulations, and stipulates that the use of unauthorized stablecoins (such as decentralized stablecoins) is subject to liability. Safe Harbor Provisions: Authorizes the Secretary of the Treasury to provide regulatory flexibility for small/experimental projects, but allows unilateral action in the event of an "emergency" (which has been criticized as having excessive executive powers). At present, the bill is only supported by Republicans, and it may be difficult to pass without the support of Democrats. Industry insiders expect that the Senate may launch another motion for debate before the end of the month.