The U.S. Congress is set to pass the GENIUS Act, which will integrate stablecoins into the mainstream financial system by requiring issuers to back their tokens with safe assets like cash and short-term U.S. Treasury bonds. The legislation also mandates that large stablecoin issuers publish audited annual financial reports. This presents a significant challenge for Tether, whose USDT is partially backed by Bitcoin and gold, and which has historically resisted full financial disclosure. Scott Armstrong, a former federal prosecutor, suggests that the GENIUS Act could hinder Tether's ability to operate in the United States. Analysts predict that the requirement for an audit will make Tether the "biggest loser" under the new law. Tether has yet to comment on the potential impact of the legislation.