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Tether’s USDT is only 81.5% the Genius Act, according to the Q2 Reserves report. But Tether still has a 3 -year window. The CEO recently stated that they will issue a new Stablecoin focused on the American market.
US President Donald Trump signed The Stablecoin Bill, De Genius Act, in the law on July 18. This meant a historic shift for regulated digital dollars on blockchain rails.
Crypto and Ai Tsar David Sacks greeted it as a way to update ‘archaic payment rails’ with ‘revolutionary’ Stablecoin paying systems. He added”
“For every digital dollar in a crypto wallet, a traditional dollar will be reserved on an American bank account, causing trillion dollars from demand to American treasury.”
With clear rules, the focus will now shift to potential issents, and the dominant player, based on El Salvador Tether (USDT)has taken the headlines again.
Tether’s 3-year-old window and American plans
Respond after the bill became law, Nic Carter, partner in crypto-oriented VC Crystal Island Ventures, said”
“Under Genie, Tether (in its current form) would be reduced by being used by domestic service providers within 3 years.”
Carter referred to the Genius ActSection 3 (b), which states,
“In the beginning of 3 years after the determination, it is illegal for a digital assetrovider to offer or sell a payment stablecoin to a person in the US, unless the Stablecoin is issued by a permitted payment of stablecoin emittent.”
Moreover, the law requires that the issuer has 100% of the reserves in cash, kasequivalents or American Treasury Bills (T-Bills).
Earlier in the year, JP Morgan reported that at that time Tether’s Reserve Backing only met the Genius Act 84%. This was based on its T-Bills, Cash and Cash equivalents.
In response, Tether CEO, Paolo Ardoino, rejected The report and stated that the company was very liquid with more than $ 1 billion in quarterly profits of T-BILLS interest only.
Now, mid -2025, the company still had a shortage of the 100% reserve compliance.
The Q2 2025 Reserves report showed that the exposure to cash from Tether and T-Bills was good for 81.49% and the rest was in Bitcoin [BTC]precious metals and loans.
Source: Tether’s Q2 Reserves Report
That said, last month, Ardoino stated That USDT will be aimed at emerging markets, but Tether will explore a new stablecoin for the American market with a characteristic function such as other issents.
In the meantime, it is expected that federal agencies such as the Federal Reserve and the Treasury Department will be issued regulations that the law will implement within six months, per Pillsbury Law.
“Those regulations will probably be completed and operational with early to mid -2026, as specified in the announced instructions.”