According to @rovercrc, Tether's investment arm has acquired a C$121.6 million ($89.2 million) stake in the gold-focused investment company Elemental Altus (ELE) as a strategic move to diversify its reserves. Tether CEO Paolo Ardoino stated this investment reflects confidence in gold's fundamentals and complements the company's significant Bitcoin (BTC) holdings of over 100,000 BTC, forming a 'dual pillar strategy.' This diversification comes as the U.S. advances the 'GENIUS Act' for stablecoins, which could impose strict compliance hurdles for Tether to operate in the U.S. market. The proposed legislation would require foreign issuers to maintain 1:1 reserves in highly-liquid assets like cash or Treasuries and undergo monthly audits, potentially conflicting with the SEC's view that reserves should not include precious metals or crypto. Consequently, Tether faces a strategic decision: pursue costly U.S. compliance, focus on non-U.S. markets, or launch a separate, fully regulated U.S. stablecoin, while competitor Circle (USDC) stands to gain U.S. market share.

According to Miles Deutscher, America holds approximately 200K $BTC, making it the leading country in BTC reserve holdings. Trump has shown interest in maintaining this lead over China by focusing on crypto innovation.

According to @justinsuntron, the president's choice to use Wrapped Bitcoin (WBTC) for BTC reserves instead of Coinbase or CBBTC is a strategic move to ensure asset security. The reliance on Coinbase's lack of Proof of Reserves (PoR) could lead to risks of asset freezing or confiscation, highlighting the importance of maintaining control over one's own keys in cryptocurrency trading.