If Trump backs Tether refinancing, this is how Bitcoin and altcoins will react

If Trump backs Tether refinancing, this is how Bitcoin and altcoins will react

If Trump explicitly supports refinancing with Tether—for example, allowing USAT to be used in federal programs or as collateral in government debt transactions—the impact on the crypto market could be immediate.

Tether, the company behind the world's largest stablecoin, USDT, has launched an offensive in the US market with the announcement of the launch of a new regulated dollar-backed token called USATThis token, which will debut before the end of the year, seeks to comply with strict US regulatory standards and attract businesses and institutions to the crypto economy under a framework of complete transparency. 

The news comes amid the recent passage of the GENIUS Act, signed by President Donald Trump, which establishes clear guidelines for stablecoin issuers. If Trump explicitly supports this refinancing with Tether, the cryptocurrency market could experience a significant boost.

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USAT: Tether's commitment to regulation and institutionalization

USAT represents Tether's response to the growing regulatory challenges facing stablecoins in the United States. Unlike the already well-known USDT, which despite its size and global use has been under legislative scrutiny, USAT was born with the commitment to comply with federal regulations from its launch

Tether CEO Paolo Ardoino explained in an exclusive interview with Crypto in America that USAT will be a dollar-backed token that is ready to fully integrate into the US legal framework from day one.

According to Ardoino, the token launch will not be an independent endeavor. Tether has enlisted the support of strategic allies such as Anchorage Digital, a government-regulated custodian platform tasked with issuing USAT, and Cantor Fitzgerald, a Wall Street giant, which will manage the asset's reserves. Both players will also gain equity stakes in Tether's new US entity, in addition to sharing revenue from managing USAT reserves. 

On the other hand, the company is positioning its operational base in Charlotte, North Carolina, with Bo Hines, former executive director of the White House Cryptocurrency Council, leading the local operation. According to Crypto in America, both stated their intention to "dominate the North American market," but in a "transparent and fully compliant" manner.

Beyond infrastructure, the core objective with USAT is clear, as the token is designed to serve an institutional and business market seeking stability, regulation, and trust. 

To date, stablecoins already have a global market valued at 300.000 over million, but the potential for expansion could push it to surpass $1 trillion in the coming years. Experts anticipate that this market will be driven in large part by new regulations such as the GENIUS Act, which Trump signed in July, and which many industry voices consider a catalyst for responsible regulation.

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Trump's potential endorsement and the ripple effect on Bitcoin and altcoins

The signing of the GENIUS Act not only paves the way for the launch of products like USAT, but also marks a substantial shift in the relationship between cryptocurrencies and the US federal government. In this context, expectations about a possible concrete signal from President Trump regarding refinancing with the Tether stablecoin are gaining ground. 

If Trump were to explicitly endorse the use of USAT—for example, by authorizing its use in federal programs or allowing it to be used as collateral in government debt transactions—the impact on the market would be immediate and profound.

At interview With Crypto in America, Ardoino emphasized that they are prepared for USAT to be a robust and officially recognized solution; therefore, if President Trump gives this endorsement, the crypto market in the United States would radically change. According to experts, such an endorsement would not only catapult the token's adoption within the financial infrastructure of government entities, but would also serve as a signal to the private sector, which could substantially increase its investments and operations in regulated stable assets.

This scenario would have direct implications for Bitcoin and altcoins, considering that the increased legitimacy of a regulated stablecoin could attract more institutional capital to the crypto market overall, improving confidence in digital assets in the long term. In that sense, the development of USAT is not only a window into the future of stablecoins, but also a nod to how the relationship between crypto innovation and regulators is evolving.

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USAT could revolutionize government funding

An explicit US endorsement of a regulated token like USAT could open an innovative avenue for refinancing public debt using dollar-backed digital currencies. In this scenario, the federal government could use USAT as collateral in debt transactions or even issue tokenized debt, facilitating more agile, transparent, and lower-cost processes compared to traditional mechanisms.

By using a token like USAT, backed by well-managed reserves and regulated under strict standards, the Treasury could access new segments of institutional investors interested in secure digital instruments, which would also offer faster settlements and fewer intermediaries. This would not only diversify the country's financing options but also drive innovation in traditional financial markets, integrating blockchain technologies into government management.

However, for this transition to be viable, a robust, transparent, and politically acceptable regulatory framework would be essential, elements that the GENIUS Act and Tether's work with its new USAT currency seek to establish.

A key step towards financial integration and transparency

USAT's official entry into the US market not only responds to regulatory pressure and competition from rivals like Circle, Paxos, and Ripple, but also represents a step toward industry maturity. With the appointment of Bo Hines as head of operations and the partnership with official watchdogs like Anchorage Digital and Cantor Fitzgerald, Tether's commitment goes beyond a simple financial product: it seeks to become a pillar of a reliable, secure, and regulatory-aligned crypto infrastructure.

This vision of transparency and compliance is crucial considering that USDT, despite its massive global adoption, is still under legislative scrutiny. Ardoino emphasizes that USAT will be the immediate solution for those who need to comply with US regulations from the outset, and USDT will evolve through the pathways outlined by the GENIUS Act to eventually achieve this.

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Thus, the stage remains open for the approval, use, and potential federal endorsement of USAT to trigger a domino effect. The added legitimacy could accelerate the entry of new companies, institutional capital, and even local governments into the crypto economy, broadening adoption and creating a more stable foundation for Bitcoin and altcoins. 

Ultimately, the development of USAT with appropriate government support could redefine how digital currencies, financial policy, and regulation interact in an industry undergoing rapid transformation.