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Tether given three years to comply with GENIUS Act

Tether must meet new regulatory standards for stablecoins in the U.S. by mid-2025.

July 19, 2025 at 06:01 PM

Tether faces 3-year deadline as GENIUS Act becomes U.S. law

Tether faces a strict deadline to comply with the new GENIUS Act in the U.S. market.

Tether must comply with GENIUS Act in three years

Tether has a three-year deadline to phase out its USDT in the U.S. market due to the newly enacted GENIUS Act. This law, signed by President Donald Trump, requires that all payment stablecoins meet 100% reserve compliance. Currently, Tether's USDT is only 81.5% compliant, as per its Q2 reserves report. The CEO of Tether announced plans to introduce a new stablecoin focused on the U.S. market, which aims to comply with these regulations. The law could significantly change how digital dollar issuers operate, with less compliance opening the door for new players in the market.

Key Takeaways

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Tether must phase out USDT in three years under the GENIUS Act.

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The law mandates 100% reserve backing for all payment stablecoins in the U.S.

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Currently, Tether's USDT is only 81.5% compliant with this requirement.

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Tether plans to launch a new stablecoin targeting the U.S. market.

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The GENIUS Act is seen as a pivotal moment for digital dollar regulations.

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Federal agencies are expected to implement regulations in the next six months.

"For every digital dollar in a crypto wallet, there will be a traditional dollar reserved in a US bank account."

David Sacks highlights how the GENIUS Act aims to secure the backing of digital currencies.

"Under GENIUS, Tether would be phased out from being used by domestic service providers within 3 years."

Nic Carter explains the impact of the GENIUS Act on Tether's operations.

"USDT will be focused on emerging markets, but we will explore a new stablecoin for the U.S."

Paolo Ardoino discusses Tether's strategy post-GENIUS Act.

The introduction of the GENIUS Act marks a significant regulatory shift for the cryptocurrency space. Tether now faces a critical juncture as it must adapt to the stringent requirements set by the legislation. The expectation that all reserves must be cash or cash equivalents underscores a deeper push for security and accountability in the rapidly evolving digital asset landscape. This could reshape how stablecoins operate and who can issue them, potentially leading to a higher demand for compliance and legitimacy in the crypto industry.