Tether's USDT stablecoin faces a July 18, 2028 deadline to secure regulatory compliance under US federal law or risk removal from American cryptocurrency exchanges. The deadline stems from the GENIUS Act, which President Donald Trump signed into law on July 18, 2025, establishing federal rules for payment stablecoins and granting digital-asset service providers a three-year transition period. From July 18, 2028, US exchanges and covered platforms generally cannot offer or sell a payment stablecoin to customers unless it is issued by a permitted payment stablecoin issuer or qualifies under provisions for foreign issuers. The law does not specifically prohibit USDT, but US exchanges could be required to stop offering the token if Tether fails to obtain necessary regulatory recognition under the framework designed to bring stablecoin oversight into federal jurisdiction.
Treasury Department Determines Foreign Issuer Eligibility Under GENIUS Act
Tether issues USDT through an overseas corporate structure and relocated its headquarters to El Salvador in 2025. Under the GENIUS Act, a foreign stablecoin issuer may access the American market if the Treasury Department determines that its home jurisdiction operates a regulatory and supervisory regime comparable to the US framework. The issuer must register with the Office of the Comptroller of the Currency and submit to ongoing reporting, supervision and examination.
Additional requirements include the ability to comply with lawful US orders and maintaining sufficient liquidity in a US financial institution to meet redemption demands from American customers, unless an approved reciprocal arrangement provides an alternative. The framework requires payment stablecoins to be backed one-for-one by permitted liquid assets, including cash, insured deposits and short-term US Treasury securities. Issuers must publish monthly reserve information, establish redemption procedures and comply with anti-money-laundering and sanctions obligations.
USDT currently has a market capitalization of approximately $184 billion, making it the largest stablecoin and one of the most heavily traded assets in global cryptocurrency markets.
Tether Launches USAT Through Anchorage Digital Bank in January 2026
Tether launched USA₮, or USAT, in January 2026 through Anchorage Digital Bank, a federally regulated institution that serves as the token's issuer. USAT was explicitly designed to operate within the GENIUS Act framework, with Cantor Fitzgerald serving as reserve custodian and preferred primary dealer. The structure allows Tether to pursue US growth without immediately converting USDT into a domestically issued stablecoin.
Chief Executive Paolo Ardoino has previously indicated that Tether also intends to seek compliance for USDT as a foreign-issued token. The company could maintain two distinct products: USAT for regulated domestic activity and USDT for international markets.
FAQ
What happens to USDT on US exchanges after July 18, 2028?
From July 18, 2028, US exchanges and covered platforms generally cannot offer or sell a payment stablecoin to customers unless it is issued by a permitted payment stablecoin issuer or qualifies under the law's provisions for foreign issuers. If Tether fails to obtain necessary regulatory recognition for USDT under the GENIUS Act, US exchanges could be required to stop making the token available.
How does USAT differ from USDT?
Tether launched USAT in January 2026 through Anchorage Digital Bank, a federally regulated institution. USAT was explicitly designed to operate within the GENIUS Act framework, with Cantor Fitzgerald serving as reserve custodian and preferred primary dealer. USDT is issued through Tether's overseas corporate structure, with headquarters relocated to El Salvador in 2025.
What must foreign stablecoin issuers do to access the US market under the GENIUS Act?
Foreign issuers must obtain a Treasury Department determination that their home jurisdiction operates a regulatory and supervisory regime comparable to the US framework. They must register with the Office of the Comptroller of the Currency, submit to ongoing reporting and examination, comply with lawful US orders, and maintain sufficient liquidity in a US financial institution to meet redemption demands from American customers.
