The GENIUS Act reshapes the stablecoin landscape! USDT faces three major challengers: USDC, DAI, and RUSD, who will break through?

With the implementation of the U.S. GENIUS Act, stablecoin issuers are required to disclose reserve details monthly, prompting both TradFi and encryption institutions to adjust their compliance strategies. Tether (USDT), despite holding a 60% market share as a leader, has been put at a disadvantage due to the quarterly disclosure mechanism and historical regulatory penalties. This article analyzes the compliance advantages and technical characteristics of three major competitors: USDC, DAI (USDS), and RUSD, interpreting the structural changes occurring in the $288 billion stablecoin market.

The stablecoin market reshuffle under regulatory storm

The total market value of global stablecoins surged from 120 billion USD in October 2023 to 288 billion USD in August 2025, an increase of 140%. Tether's USDT holds a market share of nearly 60% with a circulation of 167.1 billion USD, but its Compliance is facing severe challenges:

1. In 2021, fined $41 million by the CFTC for misleading statements regarding reserves.

2. The quarterly disclosure report conflicts with the monthly requirements of the GENIUS Act.

3. Actively exit the European market to avoid the MiCA regulatory framework.

The three major challengers have launched a Compliance breakthrough battle.

1. USDC: Compliance benchmark

With a market value of $68 billion, it ranks second. The issuer, Circle, has insisted on monthly reserve audits since 2018. It has also obtained dual compliance certification under the US GENIUS Act and the EU MiCA, and its euro stablecoin EURC has also completed compliance arrangements. Analysts believe that its transparency will attract institutional fund migration.

2. DAI (renamed USDS): Decentralized Pioneer

Operated by SkyDAO, formerly known as MakerDAO, it adopts an over-collateralized encryption asset mortgage model (non-fiat backing). Holding SKY governance tokens allows participation in decision-making, truly achieving decentralized governance. Currently, the collateralization rate is maintained at over 150%, successfully withstanding multiple extreme market fluctuations in 2023.

3. RUSD: Ripple's strategic weapon in the ecosystem

Despite a market value of only $667 million, it has gained a regulatory first-mover advantage with a license from the New York State Department of Financial Services (NYDFS). It is deeply integrated with the Ripple cross-border payment network and has connected with multiple international financial institutions. XRP holders can participate in ecosystem development through staking, creating a unique value capture mechanism.

The transparency of reserves has become a core competitive advantage.

The GENIUS Act requires stablecoin issuers to:

1. Publish the composition and proportion of reserves monthly.

2. Independent auditor's firm audit

3. The minimum reserve requirement is not less than 100%.

Currently, USDC and RUSD have fully met the standards, while Tether still needs to adjust its disclosure frequency. The EU MiCA further requires issuers to hold an EU license, resulting in USDT exiting the European market.

Institutional capital flow indicates a market change.

On-chain data shows that in the second quarter of 2025, stablecoin large transfers (>$100,000) accounted for:

1. The institutional transfer volume of USDC increased by 210% month-on-month.

2. USDT still maintains a 65% share but shows weak growth.

3. The number of RUSD enterprise users increased by 300% quarter-on-quarter.

It is worth noting that traditional institutions like BlackRock and Fidelity clearly prefer compliance projects in their stablecoin allocations.

Conclusion

The stablecoin market is evolving from the unilateral hegemony of Tether to a diversified competitive landscape. Regulatory Compliance, reserve transparency, and ecological integration capabilities have become the three assessment criteria of the new era. Although USDT still maintains a scale advantage due to its first-mover advantage, the regulatory adaptation of USDC, the decentralized concept of DAI, and the licensing advantage of RUSD are constructing differentiated competitive barriers. It is recommended that investors pay attention to the monthly reserve reports of each stablecoin issuer, the dynamics of regulatory agencies, and large on-chain transfer data; these indicators will determine the core direction of market distribution in the next phase.