Tether’s existing stablecoin, USDT, is the largest by circulation, with approximately $188 billion outstanding. Presumably, once implementing regulations are finalized and GENIUS comes fully into effect, USDT will operate offshore, while USA₮ operates on shore. Tether froze more than $500 million of USDT linked to an illegal gambling and money laundering network in Turkey, according to news reports last week. Tether CEO Paolo Ardoino commented on the freeze, saying, “Law enforcement came to us, they provided some information, we looked at the information and we acted in respect of the laws of the country. And that’s what we do when we work with the DOJ, when we work with the FBI, you name it.”
USDT remains the largest stablecoin by circulation, with about $188 billion outstanding. As regulators finalize the GENIUS framework, the design envisions USDT operating offshore while a domestic onshore version would run within the United States. The evolving regulatory landscape will influence how stablecoins are issued and managed across borders.
Recent reports note that Tether froze more than $500 million of USDT tied to an illegal gambling and money-laundering network in Turkey, underscoring the enforcement dimension of crypto regulation. Tether CEO Paolo Ardoino said the company acted in line with applicable laws after agencies provided information.
With GENIUS in effect, observers expect clearer jurisdictional rules and closer cooperation with law enforcement agencies. The episode highlights the importance of robust AML controls and transparent cross-border operations to maintain trust in USDT.
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