diff --git a/Cargo.lock b/Cargo.lock
index ccf00d13fb..61c1f901d4 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -4129,6 +4129,7 @@ dependencies = [
  "alloy-eips",
  "alloy-primitives",
  "alloy-rpc-types",
+ "chain",
  "derive_more 1.0.0",
  "num",
  "number",
diff --git a/crates/driver/src/domain/competition/solution/encoding.rs b/crates/driver/src/domain/competition/solution/encoding.rs
index ea55b103af..7d4fe975c7 100644
--- a/crates/driver/src/domain/competition/solution/encoding.rs
+++ b/crates/driver/src/domain/competition/solution/encoding.rs
@@ -43,6 +43,7 @@ pub fn tx(
     approvals: impl Iterator<Item = eth::allowance::Approval>,
     internalization: settlement::Internalization,
     solver_native_token: ManageNativeToken,
+    chain: chain::Chain,
 ) -> Result<eth::Tx, Error> {
     let mut tokens = Vec::with_capacity(solution.prices.len() + (solution.trades().len() * 2));
     let mut clearing_prices =
@@ -170,7 +171,10 @@ pub fn tx(
 
     // Encode allowances
     for approval in approvals {
-        interactions.push(approve(&approval.0))
+        if approval.requires_reset(chain) {
+            interactions.push(approve(&approval.revoke().0));
+        }
+        interactions.push(approve(&approval.0));
     }
 
     // Encode interactions
diff --git a/crates/driver/src/domain/competition/solution/settlement.rs b/crates/driver/src/domain/competition/solution/settlement.rs
index 907713046b..a469cfe9f8 100644
--- a/crates/driver/src/domain/competition/solution/settlement.rs
+++ b/crates/driver/src/domain/competition/solution/settlement.rs
@@ -114,6 +114,7 @@ impl Settlement {
                 solution.approvals(eth, Internalization::Enable).await?,
                 Internalization::Enable,
                 solver_native_token,
+                eth.chain(),
             )?,
             uninternalized: encoding::tx(
                 auction,
@@ -122,6 +123,7 @@ impl Settlement {
                 solution.approvals(eth, Internalization::Disable).await?,
                 Internalization::Disable,
                 solver_native_token,
+                eth.chain(),
             )?,
             may_revert: solution.revertable(),
         };
diff --git a/crates/eth-domain-types/Cargo.toml b/crates/eth-domain-types/Cargo.toml
index 9b5e27952d..466837e34e 100644
--- a/crates/eth-domain-types/Cargo.toml
+++ b/crates/eth-domain-types/Cargo.toml
@@ -9,6 +9,7 @@ license = "MIT OR Apache-2.0"
 alloy-eips = { workspace = true }
 alloy-primitives = { workspace = true }
 alloy-rpc-types = { workspace = true }
+chain = { workspace = true }
 derive_more = { workspace = true }
 num = { workspace = true }
 number = { workspace = true }
diff --git a/crates/eth-domain-types/src/allowance.rs b/crates/eth-domain-types/src/allowance.rs
index 91222566df..17f1881c31 100644
--- a/crates/eth-domain-types/src/allowance.rs
+++ b/crates/eth-domain-types/src/allowance.rs
@@ -1,6 +1,7 @@
 use {
     super::{Address, TokenAddress},
-    alloy_primitives::U256,
+    alloy_primitives::{U256, address},
+    chain::Chain,
     derive_more::{From, Into},
 };
 
@@ -60,4 +61,25 @@ impl Approval {
             ..self.0
         })
     }
+
+    /// Some tokens (e.g. USDT) revert when approving a non-zero value if the
+    /// current allowance is also non-zero. For these tokens the allowance must
+    /// be reset to 0 before setting a new value.
+    pub fn requires_reset(&self, chain: Chain) -> bool {
+        let tokens: &[Address] = match chain {
+            Chain::Mainnet => &[address!("dAC17F958D2ee523a2206206994597C13D831ec7")], // https://etherscan.io/token/0xdAC17F958D2ee523a2206206994597C13D831ec7
+
+            // Other implementations of USDT don't require you to reset the allowance first:
+            //    - Bnb: https://bscscan.com/token/0x55d398326f99059ff775485246999027b3197955
+            //    - Base: https://basescan.org/token/0xfde4C96c8593536E31F229EA8f37b2ADa2699bb2
+            //    - Arbitrum: https://arbiscan.io/token/0xFd086bC7CD5C481DCC9C85ebE478A1C0b69FCbb9
+            //    - Polygon: https://polygonscan.com/token/0xc2132d05d31c914a87c6611c10748aeb04b58e8f
+            //    - Avalanche: https://snowscan.xyz/token/0x9702230a8ea53601f5cd2dc00fdbc13d4df4a8c7
+            //    - Linea: https://lineascan.build/token/0xa219439258ca9da29e9cc4ce5596924745e12b93
+            //    - Gnosis: https://gnosisscan.io/token/0x4ECaBa5870353805a9F068101A40E0f32ed605C6
+            _ => &[],
+        };
+
+        tokens.contains(&self.0.token.0)
+    }
 }