Tether has until July 18, 2028 to bring the USDT stablecoin into full compliance with the requirements of the GENIUS Act. This framework regulatory act was signed by US President Donald Trump back on July 18, 2025. The document strictly regulates the issue and turnover of stablecoins, setting strict requirements for all issuers of digital assets. In particular, the law obliges companies to undergo mandatory state registration and retain reserves in a one-to-one ratio. These reserves should consist exclusively of highly liquid assets such as cash or short-term Treasury bonds. In addition, issuers are required to publish the composition of their reserves on a monthly basis and undergo an independent accounting audit.

Despite the upcoming deadlines, Tether has not yet taken significant steps to adapt its business. The issuer's headquarters are located in El Salvador, and its reserves officially include precious metals and bitcoins. Due to this asset structure, the company cannot legally offer USDT on the American market according to the new rules. Aware of these risks, Tether has released a special USAT stablecoin designed exclusively for users from the United States. However, this new asset is still losing a tough competition to established market players. At the same time, companies such as Circle and WLFI have already actively applied to the Office of the Currency Controller for a trust bank license.

Officially, the GENIUS Act is scheduled to enter into full force on January 1, 2027. Initially, the text of the regulatory act provided for a three-year transition period for the adaptation of the issuers' business. It is assumed that these benefits also apply to foreign companies working with American users. However, Paul Hastings law firm has previously indicated that certain critical provisions will have to be followed immediately. For example, we are talking about strict compliance with the requirements for freezing and withdrawing funds according to legal regulations. An additional complication is created by the fact that federal agencies have not yet implemented the necessary mechanisms to implement these standards in practice.