Tether's USDT Under Fire as GENIUS Act Deadline Nears

Tether's USDT stablecoin faces challenges in the U.S. market as the GENIUS Act looms closer to enforcement.

The law, signed one year ago, requires stablecoin issuers to hold reserves in highly liquid and reliable assets such as cash and U.S. Treasuries, reducing redemption risk and making payment stablecoins look more like regulated financial instruments.

Tether has said it intends to comply with the GENIUS Act, but has not yet announced a full restructuring of USDT's reserves or operating model around the new U.S. law.

The company remains central to crypto liquidity, especially outside the U.S., but the American regulatory system is moving toward a model that gives compliant, bank-linked issuers a stronger position.