cryptoconservative
Tether’s Tight Spot: Will US Rules Push It Out of America?
USASunday, July 19, 2026
A stablecoin that once ruled the crypto world now faces a ticking clock.
The U.S. law called GENIUS, meant to bring order to digital currencies, set a deadline for companies that issue stablecoins. The law’s main goal is to keep the U.S. markets safe, but it also forces companies to meet strict reserve and compliance standards.
Tether’s Compliance Gap
- Tether, the biggest stablecoin by trading volume, promised last year that it would adjust to meet GENIUS.
- Latest reports show that up to 25 % of its reserves still sit in assets like precious metals, loans, and even Bitcoin.
- These holdings do not fit the law’s requirement for highly liquid assets such as cash or U.S. Treasury bills.
Circle vs. Tether
| Aspect | Circle | Tether |
|---|---|---|
| Regulatory Alignment | Actively aligning with upcoming U.S. requirements | New token USAT barely gaining traction |
| U.S.-Specific Version | N/A | Available through crypto bank Anchorage Digital, but not mainstream |
Potential Market Shake‑up
- If Tether fails to meet GENIUS’s demands, it could lose its dominant position and allow rivals or new entrants to take over.
- Conversely, a quick compliance effort could keep Tether in the game and secure its future on U.S. exchanges.
Actions
flag content
