“The reserve requirements, anti-money laundering requirements, all fall neatly for RLSUD and USDC.,” Jeremy Hogan, partner at law firm Hogan & Hogan, wrote on X on Monday, pointing to issuers Ripple and Circle while echoing sentiment shared by others across the crypto community.
This could provide an edge over foreign-based issuers, such as Tether (USDT), the world’s largest stablecoin issuer by market cap, which some argue may struggle to adjust. Tether, currently based in Bitcoin-friendly El Salvador, has no formal U.S. presence and has traditionally backed its USDT stablecoin with a mix of assets, including Bitcoin, U.S. Treasury bills, and corporate paper. Much of Tether’s reserves, particularly its Bitcoin holdings, may not meet the new compliance standards, according to a recent report from JP Morgan.
