USDT Under Threat in the US

Tether has two years to bring USDT into compliance with US regulations. If the company fails to restructure its reserves, the world’s largest stablecoin could disappear from platforms operating in the United States.

The GENIUS Act, signed into law a year ago by President Donald Trump, requires issuers to fully back their tokens with highly liquid and secure assets—primarily cash and US Treasury securities.

However, Tether’s latest figures suggest that as much as a quarter of USDT’s reserves may be held in assets that do not meet these requirements. These include precious metals, loans and bitcoin.

Shortly after the legislation was signed, Paolo Ardoino assured the public that Tether would comply with the new rules. The company announced plans to launch a separate token for the US market while also ensuring that USDT meets the requirements applicable to foreign issuers.

Federal regulators were given one year to draft the rules needed to implement the GENIUS Act, but the process has yet to be completed. The industry also remains divided over how some of the legislation’s provisions should be interpreted.

Tether, Circle and other stablecoin issuers are expected to come under federal supervision in the coming months. How the regulations are ultimately implemented could determine which companies retain their dominant position in the market.