Tether’s USDT could lose access to U.S. exchanges by July 2028 without a reserve overhaul to satisfy the GENIUS Act, CoinDesk reported this week. The stablecoin, backing roughly $184 billion in circulation as of July 2026 per CoinMarketCap, still keeps close to a quarter of its reserves in assets the law won’t allow, including precious metals, lending positions and bitcoin.
What Happened
The GENIUS Act became law on July 18, 2025, giving stablecoin issuers a three-year window to hold reserves only in cash and U.S. Treasuries. As Latham & Watkins detailed in its client alert on the law, permitted issuers must back stablecoins on at least a one-to-one basis and file monthly reserve reports certified by their CEO and CFO.
The law’s first anniversary passed this weekend, and federal regulators still haven’t finished the rules spelling out exactly how foreign issuers like Tether must comply, though the July 2028 cutoff for exchange listings hasn’t moved, per CoinDesk.
CEO Paolo Ardoino told CoinDesk at the White House a year ago, “Tether will comply with the GENIUS Act,” adding that USDT would be managed to meet its foreign-issuer standards even as the company built a separate U.S.-only token. When CoinDesk asked again this week whether that plan has progressed, Tether representatives didn’t respond.
Kevin Wysocki, head of policy at Anchorage Digital, told CoinDesk that non-compliant stablecoins won’t be usable by U.S. institutions once the safe harbor expires in 2028, and that he expects institutional money to shift toward bank-issued alternatives well before that date.
Why Exchanges Are Already Weighing Their Options
Nothing changes today for anyone holding USDT on a U.S. exchange, but the deadline is pushing platforms to plan ahead. Attorney Justin Levine of Davis Polk told CoinDesk that exchanges wanting to keep USDT’s liquidity should already be weighing their options, even if delisting isn’t close. Our news hub is tracking how that pressure builds across exchanges as the 2028 deadline approaches.
The OCC Registration Step Tether Hasn’t Taken
Levine said registering with the Office of the Comptroller of the Currency, a remaining requirement for foreign issuers, is likely to demand a heavy legal lift for Tether. Whether the company starts that process before GENIUS takes full effect in January 2027, when foreign issuers must at least honor U.S. freeze and seizure orders, will be an early signal of intent.
What This Means For You
If you hold USDT through a U.S. exchange, nothing changes right now, but it’s worth watching whether Tether registers with U.S. regulators before the 2028 deadline arrives.
This article is for informational purposes only and does not constitute financial advice. Do your own research before making any investment decisions.
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