How Tether profited from the first American crypto law

The first US crypto law, the GENIUS Act, contains several provisions that benefit stablecoin issuer Tether. This emerges from an extensive investigation by Bloomberg, which also reveals that two people with close ties to the White House play a notable role in how this legislation came about.

Tether currently stands at $1.00, keeping the price stable as expected from a stablecoin.

The role of Bo Hines and the three-year term

Former White House crypto adviser Bo Hines describes the inclusion of a three-year transition period for foreign stablecoin issuers in the GENIUS Act as a “red line” for the Trump administration. That is according to sources familiar with the negotiations, speaking to Bloomberg. This provision is specifically something that Tether wanted to see in the law.

What makes the matter even more contentious: Hines will join Tether about a month after the law is signed. Critics therefore point out that his advocacy for this provision is hard to separate from his future employer. Tether itself denies receiving any special benefits or engaging in improper lobbying activities.

Howard Lutnick and shielding legislation

Alongside Hines’ role, the name Howard Lutnick also appears. Lutnick, now US Secretary of Commerce under Trump, previously served as a banker for Tether. According to a court ruling, in that capacity he managed to “kill” less favourable legislation for Tether. Which specific law this concerns and how he achieved it are detailed further in the Bloomberg investigation.

The combination of these two storylines raises questions about the extent to which the crypto law is actually drafted in the public interest, or rather in the interest of one specific company. The final law contains several clauses that observers view as favourable to Tether, although the company firmly denies any suggestion of undue influence.