This year Tether launched USAT – launched with US standards in mind and issued through US banking partner Anchorage Digital. So far, it is still at a relatively low consumption level.
“Non-compliant stablecoins cannot be used by US institutions when the safe harbor expires in 2028, but we don’t expect the market to wait,” said Kevin Wysocki, head of policy at Anchorage Digital, the crypto-native bank that manages a number of stablecoins. He said the company believes institutional users will move toward “compatible, bank-issued digital dollars well before that deadline.”
Are they two years old?
GENIUS included a three-year grace period for compliance, with two years remaining after which US crypto platforms will not be able to offer stablecoins if issuers have not checked all regulatory boxes. However, there appears to be some disagreement as to whether foreign issuers should enjoy the same safe harbor. Some lawyers in finance assume that Tether has until July 18, 2028 to comply, but others have suggested that foreign issuers would have to comply the moment GENIUS officially goes live, which is likely six months from now in January.
“Once the GENIUS Act is effective, foreign issuers will have to immediately comply with legal orders to seize and freeze coins held by illegal actors, but they will have a runway of approximately two more years to prepare for the additional requirements so that their coins can remain eligible for listing on US centralized trading platforms,” said Justin Levine, a Davissk attorney advising that a Davissk attorney. requirement – registration with the Office of the Comptroller of the Currency – is likely to require a “significant commitment”
