What actually happened?
The GENIUS Act, which creates a federal framework for stablecoins in the U.S., was signed by President Donald Trump on July 18, 2025 (CryptoSlate). A year later, regulators missed the deadline for writing the final implementing rules (The Block). The delay does not postpone the law's effectiveness itself, however: according to The Block, that is set for January 18, 2027, and the framework should be fully in force by July 2028 (CoinDesk).
In other words: the rules are not finished yet, but the clock is already ticking. This has created a compressed window in which both regulators and stablecoin issuers must get a lot of work done (The Block).
A stablecoin is a crypto asset pegged to the value of another currency, typically the U.S. dollar. For such coins, the GENIUS Act introduces requirements such as one-to-one reserve backing with liquid assets, the right to redemption, and monthly reserve disclosures (CryptoSlate).
Why is USDT's position at risk?
Tether, with its USDT token, is the largest player on the market. According to CryptoSlate, the total stablecoin market holds roughly 310 billion dollars, of which USDT accounts for about 184 billion and USDC roughly 73 billion.
The headline on this topic (CoinDesk) speaks of a "two-year countdown" that threatens USDT's standing on U.S. crypto platforms. The logic is as follows: once the law takes full effect, U.S. platforms will have to offer only stablecoins that meet the new federal framework. Whether and how USDT meets these conditions does not yet clearly follow from verified sources. That is the key unknown.
How large and how fast is the market to be regulated?
The regulation is arriving in an environment that grew faster than the rules. According to CryptoSlate, U.S. Fed researchers measured stablecoin capitalization at 317 billion dollars on April 6, an increase of more than 50% compared to the start of 2025. The volume of stablecoin transactions on Ethereum, according to the same source, has risen 50% since the law was passed.
| Metric | Value | Source |
|---|---|---|
| Total stablecoin market | ~310 bn USD | CryptoSlate |
| USDT | ~184 bn USD | CryptoSlate |
| USDC | ~73 bn USD | CryptoSlate |
| Capitalization per the Fed (Apr 6) | 317 bn USD | CryptoSlate |
| Law signed | Jul 18, 2025 | CryptoSlate |
| Effectiveness | Jan 18, 2027 | The Block |
| Full force | by 7/2028 | CoinDesk |
Does the delay in rules mean a problem, or relief?
Views differ. CryptoSlate states in its headline that a year after signing, the law has made selling stablecoins easier, meaning the federal framework added legitimacy to the market. The Block, on the other hand, points out that the missed deadline compresses the time for implementation. Both can be true at once: clearer rules help the market, but the short window for implementing them increases pressure.
Where does Texas and the broader U.S. appetite for crypto fit in?
While the rules are being worked out, capital keeps flowing into the U.S. crypto sector. According to Cointelegraph, Galaxy Digital signed a 15-year deal to name the Texas Tech football stadium, expanding its presence in West Texas, a state attracting growing crypto investment. It is a separate story, but it illustrates the environment in which stablecoin regulation is maturing.
What to watch in this type of situation
- When regulators publish the final rules and what exact requirements they set for reserves and disclosures.
- How specific U.S. platforms react to the approaching effectiveness (Jan 18, 2027) and full force (by 7/2028).
- Whether Tether announces steps to comply with the U.S. framework. That remains unknown for now.
This is not investment advice. We describe what happened, and distinguish facts from what we do not yet know.