One year after the GENIUS Act was signed, Tether’s USDT faces an unclear path in the U.S. market. The law includes a three-year compliance grace period, leaving roughly two years before non-compliant stablecoins can no longer trade on U.S. crypto platforms. Tether’s latest disclosure shows that about 25% of USDT reserves remain allocated to assets such as precious metals, loans, and Bitcoin, which do not meet the act’s requirement for full backing with cash and highly liquid assets including U.S. Treasuries.
Tether CEO Ardoino had pledged compliance last year. This year, the company launched the U.S.-focused stablecoin USAT through Anchorage Digital, though usage remains low. Legal professionals are still split on the compliance timeline for foreign issuers. Some lawyers say foreign issuers must comply with freeze and seizure orders as soon as the law takes effect, which is expected in January next year, while they may have around two more years to satisfy other requirements. Federal regulators have not yet finalized implementation rules, leaving companies without detailed guidance.
One year after the GENIUS Act was signed, Tether’s USDT faces an uncertain future in the U.S. market.
The law includes a three-year compliance grace period, leaving roughly two years. After that, stablecoins that fail to meet the requirements will no longer be allowed to trade on U.S. crypto platforms.
Reserve mix remains out of line with the act
According to Tether’s latest disclosure, about 25% of USDT reserves are still allocated to assets such as precious metals, loans, and Bitcoin. Those assets do not satisfy the GENIUS Act’s standards. The law requires issuers to maintain full reserves in cash and highly liquid assets such as U.S. Treasuries.
Tether CEO Ardoino said last year that the company would comply. This year, Tether also launched USAT, a stablecoin aimed at the U.S. market, through Anchorage Digital, but its usage remains low.
Lawyers differ on the timeline for foreign issuers
Legal professionals disagree on when foreign issuers must comply. Some lawyers believe foreign issuers will need to follow freeze and seizure orders as soon as the act takes effect, which is expected in January next year. They may still have about two years to meet the rest of the requirements.
An Anchorage Digital policy executive said institutional users will shift to compliant stablecoins before the 2028 deadline.
Rules are still not final
Federal regulators have not yet finalized the implementation details of the GENIUS Act, leaving companies without specific rules to follow for now.
Tether did not respond to CoinDesk’s request for comment on its compliance progress.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
