The U.S. Senate is expected to vote this week on a bipartisan bill that would impose new rules on stablecoin issuers, including requirements for full reserves and monthly audits. The measure comes as regulators and lawmakers take a closer look at offshore operators and the risks tied to dollar-linked digital tokens.

Tether, the issuer of USDT, would be among the companies most affected if the bill advances. The company’s reserves have drawn renewed attention because USDT remains one of the world’s largest stablecoins, widely used across crypto markets for trading and payments. Rival issuer Circle, which manages USDC, would also fall under the proposed framework.

Supporters of the legislation say clearer reserve standards and regular audits could strengthen consumer protection and reduce the chance of instability in a market that has grown rapidly with limited federal oversight. Critics, however, have long argued that enforcement gaps and uneven disclosure practices leave users exposed when issuers operate across multiple jurisdictions.

If approved, the bill would mark one of the most significant U.S. attempts yet to set a national standard for stablecoins. The outcome could shape how major issuers hold assets, report reserves, and interact with regulators in the months ahead.