Tether’s USDT is facing a roughly two-year window to adjust to U.S. stablecoin rules after the GENIUS Act reached its first anniversary, according to a report cited by Odaily. If USDT does not meet the regulatory requirements in the future, the token could risk losing access to trading on U.S. crypto platforms. The law requires stablecoin issuers to maintain full reserves and hold those reserves mainly in highly liquid assets such as cash and U.S. Treasuries. Tether’s latest reserve disclosure shows that part of USDT’s backing still includes assets such as precious metals, lending-related assets, and Bitcoin, which may not fit the new rules. The report points to reserve composition as a key issue in Tether’s path toward compliance in the U.S. market.
Tether’s USDT faces a roughly two-year compliance adjustment window after the U.S. GENIUS Act reached the one-year mark, according to a CoinDesk report cited by Odaily.
Risk to U.S. platform trading
If USDT is unable to meet future U.S. stablecoin regulatory requirements, it could face the risk of no longer being available for trading on U.S. crypto platforms.
Reserve rules under the GENIUS Act
The GENIUS Act requires stablecoin issuers to maintain full reserves and to allocate those reserves mainly to highly liquid assets such as cash and U.S. Treasuries.
Tether’s latest reserve disclosure
Tether’s most recent reserve disclosure shows that part of USDT’s reserves is still allocated to assets that may not satisfy the new requirements, including precious metals, lending assets, and Bitcoin.
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