USDT Risks Disappearing from US Exchanges in 2028

Tether’s USDT, the world’s largest stablecoin by volume, risks losing access to the US market. That is according to CoinDesk, which reports that foreign stablecoin issuers such as Tether may have until July 2028 to comply with the requirements of the GENIUS Act. If they fail to do so, they risk being barred from US centralised exchanges.

What the GENIUS Act requires of Tether

The GENIUS Act, full name the Guiding and Establishing National Innovation for U.S. Stablecoins Act, came into force in the US a year ago. The law imposes strict requirements on stablecoin issuers that wish to operate on US exchanges. For Tether, this means among other things that the company may need to register with the OCC, comply with US freeze and seizure orders, and possibly make significant changes to the reserve structure of USDT.

Although CEO Paolo Ardoino promised last year that Tether would make USDT compliant for the US market, the company has taken no concrete steps in that direction so far. There is no clear change of direction visible that aligns with what the law requires. The federal regulators still need to finalise the implementation rules, which means there is still some uncertainty about the exact interpretation of the requirements.

Implications for the position of USDT

USDT is currently trading stably at $1.00, which is no surprise for a stablecoin. But the question is how long the token can maintain its dominant position if access to the US market falls away. Competitors such as Circle’s USDC already operate from the US and are better positioned to comply with the new regulations. For example, OKX Europe already helps users to convert USDT to MiCA-compliant USDC, a trend that could accelerate further with stricter regulation.

So there is a lot at stake for Tether. The company has just over two years to adapt to US legislation. Whether that is enough time to implement the necessary structural changes remains the big question for now.