New Record For USDT, But Regulators Are Concerned

Despite regulatory warnings, Tether continues its leading run. The company behind USDT has just surpassed the symbolic threshold of 160 billion tokens issued. An impressive peak that, instead of reassuring, awakens old anxieties. Between spectacular growth and structural fragility, the stablecoin giant once again crystallizes tensions in the crypto universe. A dive into an ascent as dizzying as it is controversial.

The Crypto Dollar of the Forgotten: The Other Face of Tether

As American regulators sharpen their weapons, USDT finds a precious place in the pockets of the world’s most vulnerable. In a tweet posted on July 16, Paolo Ardoino, CEO of Tether, celebrates this symbolic milestone: “A new dizzying milestone, a declaration of the unparalleled utility of USDT as a digital dollar for billions of people living in emerging markets and developing countries.”

And this utility is not limited to words: in Nigeria, Argentina, Lebanon, and Turkey, USDT is establishing itself as a bulwark against hyperinflation. It bypasses failing local banks and enables millions of families to send, receive, and preserve value.

A digital dollar, accessible via Telegram, Tron, or Binance, and that no one truly controls. Tether doesn’t sell dreams; it sells stability. And in some countries, that’s a luxury.

The GENIUS Act or the States’ Revenge on Stablecoins

In the hushed corridors of the US Senate, the GENIUS Act advances. This bill could simply ban the use of Tether in the United States if its reserves are not audited by a third party. A logical requirement, but one that shakes the walls of crypto finance. Because Tether has never accepted a full audit of its reserves.

According to analysts, USDT currently represents 85% to 90% of the global bitcoin volume. And according to crypto influencer Jacob King, the situation is explosive:

Tether is about to be BANNED as soon as the GENIUS Act passes the Senate. Why do you think they desperately print USDT out of thin air to inflate prices to unsustainable heights? […] If you hold crypto, get out while you still can. 

By imposing control over Tether’s reserves, the United States seeks to restore its authority over digital finance. It is a clash between two sovereignties: that of blockchains, and that of governments.

Liquidity, leverage, overheating: Tether on the edge

Behind the explosion in figures, warning signals are flashing. On July 16, Tether struck again: 2 billion USDT were issued in one day. Some went to Binance, the rest into inventory. A maneuver that feeds doubts about the purpose of these issuances.

Pressure is also mounting on the bitcoin market, fueled by derivatives and leverage. If a wave of forced liquidation hits overleveraged funds, the domino effect could be fatal.

Tether maintains that its tokens are fully covered by its reserves. Officially, 100 billion in treasury bills and 8 billion in gold. However, no external firm can confirm this figure.

Key numerical benchmarks:

• Tether has issued 160 billion USDT, a historic record;
• 2 billion USDT minted in one day, July 16;
• $127 billion in Treasury bonds according to Tether, but without external audit;
• 85% of estimated Bitcoin volume depends on USDT according to analysts;
• Tether is used in more than 150 countries, often as a substitute for local currencies.

Despite everything, USDT remains the backbone of crypto liquidity. Instantaneousness, absence of KYC, stability: it’s an explosive cocktail… or a lifesaver, depending on the perspective.

Behind wallet projects and Web3 ambitions, Tether stays true to a philosophy: accumulating solid reserves. The company now reportedly holds over 100,000 bitcoins and nearly 50 tons of gold. A safe resembling a central bank… without the bank.