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

Tether's US Challenge: Navigating the New Stablecoin Law A new era for digital dollars has begun with the recent enactment of the GENIUS Act by U.S. President Donald Trump. This groundbreaking legislation aims to revolutionize payment systems, mandating that stablecoins hold 100% of their reserves in U.S. bank accounts, promising to fuel immense demand for U.S. Treasuries. However, the world's leading stablecoin, Tether's USDT, faces a significant hurdle. Its Q2 2025 reserves report reveals only 81.5% compliance with the GENIUS Act's strict reserve requirements, falling short of the mandated 100% backing in cash, equivalents, or short-term U.S. T-bills. Despite a three-year grace period before non-compliant stablecoins could be phased out from U.S. service providers, Tether is already adapting. CEO Paolo Ardoino announced that USDT will pivot its focus to emerging markets. Crucially, Tether plans to introduce an entirely new stablecoin specifically tailored for the U.S. market, potentially incorporating attractive yield-sharing features. As federal agencies, including the Federal Reserve and Treasury, prepare to finalize regulatory implementations by early to mid-2026, the competitive landscape for stablecoins in the United States is poised for a dramatic transformation. Tether's strategic shift underscores the profound impact of the GENIUS Act on the future of digital currency in America.