USDT is back in the US spotlight.

A report by Senate Democrats says that 84% of 846 Iran-related wallets primarily use USDT.

One sanctioned oil-smuggling network even transferred more than $603 million through USDT.

Tether, meanwhile, says it has frozen about $550 million in Iran-linked USDT in 2026.

As stablecoins continue to grow, will regulators treat them as financial infrastructure or as a risk tool?