The GENIUS Act is now law, and Tether has roughly two years to figure out its US future. The stablecoin giant behind USDT, which commands approximately $187 billion in circulation, faces exclusion from American exchanges by mid-2028 if it can’t satisfy the new regulatory framework’s compliance demands.
What the GENIUS Act actually requires
The GENIUS Act, formally known as Public Law 119-27, was signed into law on July 18, 2025. Sponsored by Senator Bill Hagerty, the bill was introduced on May 1, 2025, and passed the Senate on June 17, 2025.
The law demands that stablecoin issuers who want to serve US individuals must be permitted entities holding 1:1 reserves in US dollars or equivalent liquid assets. They need to publish monthly disclosures detailing those reserves. And they must comply with the Bank Secrecy Act, including full anti-money laundering and know-your-customer requirements.
The law establishes a transition period for US digital asset service providers that ends around mid-2028. After that deadline, exchanges and other platforms serving US customers must drop any stablecoin that doesn’t meet the new standards. Final rules governing BSA compliance are expected to land in early 2027, following a joint proposed rule issued by Treasury, FinCEN, and OFAC on April 8, 2026.
