According to Corey Frayer, the GENIUS Act imposes strict compliance requirements like one-for-one reserves and monthly audits that Tether may avoid by focusing on non-U.S. markets, potentially allowing competitors like Circle's USDC to gain U.S. market share and affect crypto liquidity. Frayer noted this could deter institutional adoption if Tether stays outside U.S. regulations, as Paolo Ardoino hinted at a U.S.-based offshoot instead, which Richard Rosenthal stated creates uncertainty for foreign issuers and trading volumes.