Key facts
- The U.S. GENIUS Act, signed into law in 2025, aims to regulate stablecoins.
- Tether's USDT stablecoin has a two-year deadline to comply with the act.
- Failure to comply could result in USDT's removal from U.S. crypto platforms.
- Federal regulators are still in the process of finalizing the specific rules for stablecoin governance.
- The act requires stablecoin issuers to adhere to reserve, governance, and operational standards.
- Proposed regulations include know-your-customer requirements for issuers.
The U.S. GENIUS Act, signed into law by President Donald Trump in July 2025, has reached its one-year anniversary, marking the first federal attempt to regulate stablecoins. While the law set a broad direction for stablecoin issuers regarding reserves, governance, and operations, the specific rules are still being developed by agencies such as the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC). Tether's USDT stablecoin is subject to a two-year compliance window under the act, after which it could be removed from U.S. crypto platforms if it fails to meet the forthcoming regulations. The proposed rules include requirements for know-your-customer checks, similar to those in traditional finance. The FDIC has posed 144 questions to industry participants regarding oversight, custody, capital, and liquidity standards for stablecoin issuers. Meanwhile, the industry awaits the passage of the Digital Asset Market Clarity Act, which has faced delays primarily due to disagreements over ethics provisions blocking government officials from profiting from crypto ventures. Senator Elizabeth Warren has publicly requested a financial disclosure from President Trump concerning his crypto dealings. A House subcommittee recently held a hearing on the Clarity Act, emphasizing the need for clear regulatory frameworks for digital assets.