To understand why the new regulations from the FDIC and the GENIUS Act have sparked a lively discussion, we need to compare it to how the "giant" Tether (USDT) is operating.

Below is a detailed comparison table to help you see the differences between the new model in the United States and the current model of USDT (see image below).

Why is this difference important?

- Trust: If you are an institutional investor from Wall Street, you will prioritize choosing FDIC-compliant stablecoins (like USDC after the new law is enacted) for maximum legal safety.

- Systemic risk: The new FDIC regulations aim to prevent a "bank run" scenario. With USDT, although they have demonstrated liquidity through many turbulent times, the risk of collateralized assets being frozen or inaccessible in foreign banks always looms.

- The future of DeFi: DeFi protocols may start prioritizing "regulated stablecoins" to avoid legal troubles when launching services in challenging markets.

Is Tether (USDT) changing?

In reality, Tether is also working to increase transparency by raising the proportion of U.S. Treasury Bonds and collaborating with major auditing firms. However, their lack of direct oversight by the FDIC means they are always compared to domestic U.S. competitors.

Personal observation: This new regulation is like putting a "guarantee seal" on compliant stablecoins. It will create a clear polarization: between "mainstream" coins and "fringe" coins.