Tether's USDT is now on a two-year countdown to meet GENIUS Act requirements or risk losing eligibility for listing on U.S. centralized exchanges.

The foreign stablecoin issuers like Tether may have until July 2028 to comply with the law, which could require OCC registration, adherence to U.S. freeze-and-seizure orders, and changes to USDT's reserve composition.

The GENIUS Act, signed into law a year ago, mandates that stablecoin issuers be fully backed by highly liquid assets — essentially cash and U.S. Treasuries. Tether's latest disclosures show roughly a quarter of USDT's reserves are still tied up in assets that wouldn't meet that standard, including precious metals, lending positions, and bitcoin holdings.

CEO Paolo Ardoino pledged compliance when the law was signed, and Tether has since launched USAT, a U.S.-focused stablecoin issued through Anchorage Digital, though adoption remains limited so far.