This year, Tether launched USAT, launched with US standards in mind and issued through US banking partner Anchorage Digital. So far, its use remains relatively low.
“US institutions will not be able to use non-compliant stablecoins 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 “digital dollars issued by compliant banks 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 whose issuers have not checked all regulatory boxes. However, there appears to be some disagreement over whether foreign issuers should enjoy the same safe harbor. Some finance lawyers assume that Tether has until July 18, 2028 to comply, but others have suggested that foreign issuers would have to comply by the time GENIUS officially goes live, which will likely be six months from now, in January.
“Once the GENIUS Act goes into effect, foreign issuers will be required to immediately comply with legal orders to seize and freeze coins held by illicit actors, but will have approximately two more years to prepare for additional requirements so that their coins can remain eligible for listing on U.S. centralized trading platforms,” said Justin Levine, a Davis Polk attorney who advises clients on stablecoin issues, adding that one of those remaining requirements, registration with the Office of the Comptroller of the Currency, probably requires a “major company”
