The new version of the stablecoin GENIUS Act requires Tether to accept US jurisdiction regardless of its location.

May 10th. As per unchained, on Thursday the Senate failed to progress the newly revised version of the stablecoin GENIUS Act into formal deliberation. Some senators stated that they had not seen the bill text prior to the vote. The latest version obtained by the media on Friday indicates that the major revision is as follows: as long as they serve US users, regardless of where foreign issuers like Tether are registered, they will be subject to US jurisdiction. In addition, the key changes in the new version of the GENIUS Act comprise: · Jurisdiction Restructuring: An "Extraterritorial Application" clause was added, demanding that foreign issuers be compliant if they aim at US users (this will bring an end to the regulatory ambiguity for Tether. Combined with the clause allowing for the expansion of reserve asset types, it further emphasizes the bias of the bill towards this company, which claims to be the "seventh largest holder of US debt"). · Service Provider Definition Expansion: Developers, validation nodes, self-hosted wallets, etc. are included in the "digital asset service provider", triggering a new debate in DeFi protocols regarding whether they need to comply with the Bank Secrecy Act and AML regulations, and stipulating liability for the use of unauthorized stablecoins (such as decentralized stablecoins). · Safe Harbor Provision: The Secretary of the Treasury is authorized to provide regulatory flexibility for small/experimental projects, but allows for unilateral action in "emergency situations" (criticized for granting excessive administrative power). Currently, the bill has only received Republican support. It may be difficult to pass without Democratic support. Industry insiders anticipate that a motion for debate in the Senate may be initiated again by the end of the month.