Tether Announces Compliance with 'Genius Act' for USAT… Emphasizes Need for Regulation in Korea [Crypto Briefing]

[Financial News] Tether, the issuer of the dollar stablecoin, has announced the launch of 'USAT', a stablecoin that fully complies with the U.S. dollar stablecoin regulation bill, the 'Genius Act'. It is expected that free collaboration with the traditional financial market will be possible as compliance with regulations is declared.
Bo Hines, the head of the USAT issuance project and Tether USAT CEO, is expected to emphasize the need for stablecoin regulatory legislation in Korea during his upcoming visit.
According to the virtual asset industry on the 16th, Tether plans to launch the dollar-based stablecoin 'USAT' by the end of the year.
Tether had previously issued the dollar stablecoin USDT. However, as it is an offshore stablecoin issued outside the U.S., there were concerns that it might be banned from circulation after the implementation of the Genius Act. The Genius Act restricts stablecoin issuance to corporations authorized by the federal government.
In response, Tether decided to focus on issuing USAT, which complies with the Genius Act enacted in July this year. USAT will be issued by 'Anchorage Digital Bank', which is authorized by the U.S. Office of the Comptroller of the Currency (OCC) and is the only virtual asset bank in the U.S.
The overall management of the USAT launch project will be handled by Bo Hines, who served as the Executive Director of the White House Digital Asset Advisory Committee during the Donald Trump administration. CEO Hines was a key policy designer during his tenure as Executive Director and publicly supported the congressional passage of the Genius Act.
The fact that a former government official has taken the lead and actively declared compliance with regulations raises expectations for expanded connections with traditional financial institutions and the institutional sector.
A representative from Chainalysis, a global blockchain analysis and data company, said, “Stablecoins have recently evolved to solve inefficiencies in payments and settlements, attracting the attention of traditional financial institutions and regulatory authorities,” adding, “The entry of institutional financial companies will increase in response to changes in the regulatory environment.”
Meanwhile, CEO Hines is scheduled to attend the 'Korea Blockchain Week 2025 (KBW2025)' held throughout Seoul from the 22nd to the 28th. As the dollar stablecoin market is divided before and after the enactment of regulatory laws, he is expected to emphasize the need for regulation in Korea, where discussions on regulatory legislation are still in the early stages.
Currently, there are four legislative proposals related to stablecoins submitted to the National Assembly. The government bill, reflecting the stance of financial authorities, is expected to be submitted through the office of Kang Jun-hyun, the ruling party secretary of the National Assembly's Political Affairs Committee, next month.
An industry insider from the virtual asset sector said, “We want to discuss the Korean won stablecoin, but the discussion is slow due to the lack of basic standards,” adding, “We hope for active discussions and issuance following the enactment of legislation, as seen in the U.S. example.”

yimsh0214@fnnews.com Sang-hyuk Lim, Reporter