GENIUS Act Strikes at Tether: USDC, USDS, and RUSD Preparing to Overthrow the 'King' Stablecoin?

The emergence of the GENIUS Act – a new law in the United States establishing a legal framework for stablecoins – is creating significant changes in the landscape of the digital currency market. In this context, Tether (USDT), the largest stablecoin in the world, faces unprecedented challenges while also contending with a wave of competition from emerging rivals. Tether – The Giant But Controversial Tether remains in the leading position with about 60% of the stablecoin market share in the total market value, which has grown strongly from 120 billion USD (10/2023) to 288 billion USD (8/2025). However, this success comes with a lot of controversies. In 2021, the U.S. Commodity Futures Trading Commission (CFTC) fined Tether 41 million USD for "misleading claims" regarding reserves not being fully backed by USD. Notably, Tether has only published quarterly reserve reports to date, while the GENIUS Act requires stablecoin issuers to transparently report on a monthly basis. This lack of compliance could become a "fatal flaw," opening opportunities for competitors to rise in the U.S. market. USDC – Traditional Competitor, Transparency and Compliance are the Weapons USD Coin (USDC) currently has a market capitalization of approximately 68 billion USD and is considered the most formidable competitor to USDT. Issued by Circle, USDC is a fiat-backed stablecoin but differs in its absolute transparency: since 2018, Circle has consistently published monthly reconciliation reports and has never been involved in legal scandals. Not only in the US, Circle is also one step ahead in Europe by meeting the stringent standards of MiCA (, the EU regulation on crypto asset markets ) for both USDC and EURC. Meanwhile, Tether has withdrawn from the European market due to non-compliance. USDS - A New Breeze From the Decentralized Model Previously known as Dai, USDS offers a completely distinct option. Instead of relying on fiat reserves, USDS is backed by over-collateralized cryptocurrency assets, managed by the organization Sky (previously known as MakerDAO). The strength of USDS lies in its decentralization: every owner of the SKY token has the right to participate in the governance process, allowing the community to control and shape the development of this stablecoin. In the context of increasing investor interest in transparent and decentralized solutions, USDS is seen as a potential long-term competitor. RUSD – The Hidden Number from Ripple and the Strength of Cross-Border Payments Another notable name is Ripple USD (RUSD) – a stablecoin linked to the Ripple ecosystem and XRP. Although its market capitalization is only about 667 million USD, RUSD has a unique competitive advantage: it is directly integrated into Ripple's cross-border payment solutions and has been licensed to operate by the New York State Department of Financial Services (NYDFS). The combination of Ripple's fast payment technology and a licensed stablecoin could open up opportunities for RUSD to penetrate deeply into the traditional financial system. The Future of the stablecoin Market – A Game of Transparency and Compliance Although Tether still dominates in scale, the new legal landscape in the US (GENIUS Act) and Europe (MiCA) is gradually changing the rules of the game. Transparency, compliance, and technology will be the three key factors determining who will lead the stablecoin market in the coming years. The rise of USDC, USDS, and RUSD not only challenges Tether's position but also shows that stablecoins are becoming a key component of the global financial system, transcending the framework of the traditional crypto world.