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first_img Tether USDT faces a two-year compliance countdown, with about 25% of reserves potentially not meeting standards

On the first anniversary of the signing of the GENIUS Act, the prospects of Tether USDT in the U.S. market face uncertainty. The act has a three-year compliance grace period, with about two years remaining, after which non-compliant stablecoins will not be able to trade on U.S. crypto platforms.According to Tether's latest disclosure, about 25% of USDT reserves are still allocated to assets such as precious metals, loans, and Bitcoin, which do not meet the requirements of the GENIUS Act. The act requires issuers to fully back their stablecoins with high liquidity assets such as cash and U.S. Treasury bonds. Tether CEO Ardoino promised compliance last year, and the company has launched the USAT stablecoin for the U.S. market through Anchorage Digital this year, but usage remains low.There is a divergence in the legal community regarding the compliance timeline for foreign issuers. Some lawyers believe that foreign issuers must immediately comply with freezing and seizure orders when the act takes effect (expected next January), but they have about two years to meet the remaining requirements. The policy director of Anchorage Digital stated that institutional users will transition to compliant stablecoins before the 2028 deadline. Currently, federal regulators have not finalized the implementation details of the GENIUS Act, and companies have no specific regulations to follow. Tether has not responded to CoinDesk's request for comments on compliance progress.

BLK's IBIT is counter-cyclical in accumulating shares, SoFiUSD is facing a countdown to compliance judgment

According to BBX data, the cryptocurrency market was under short-term pressure yesterday due to geopolitical shocks, but institutional capital flows showed a clear divergence from price trends. The core dynamics are as follows:BlackRock, Inc. (NYSE: $BLK) subsidiary iShares Bitcoin Trust (NASDAQ: $IBIT) experienced a decline in Bitcoin on July 13 due to the renewed tensions between the U.S. and Iran (with $253 million in leveraged positions being liquidated). However, according to CoinDesk's daily report, ETF capital flows maintained a net inflow trend, continuing the trend of capital returning after breaking a 10-day net outflow streak on July 4. On July 4, the single-day net inflow reached $221.7 million, the largest in nearly two months, with Fidelity FBTC attracting $166 million in a single day and ARK Invest ARKB attracting $91.8 million. Subsequently, IBIT exhibited a structural divergence of "price decline but no significant capital outflow" amid macroeconomic uncertainty, interpreted by analysts as a signal of institutional capital continuously accumulating at the bottom of the range rather than panicking. Today's June CPI will be announced at 8:30 AM ET; if inflation is lower than expected, it will provide the most direct macro trigger for a new round of daily net inflows into IBIT. Breaking the $64,000 resistance level for BTC will be a key technical node for the market to confirm a bottom rebound and for institutional capital to accelerate its return to IBIT. CryptoSlate analysis points out that this level is the starting point for "retesting the June 15 high of $67,250."SoFi Technologies, Inc. (NASDAQ: $SOFI) subsidiary SoFiUSD stablecoin (launched on May 27 as the first built-in stablecoin by a national bank in U.S. history, covering approximately 14.7 million members and supporting Ethereum and Solana chains) is facing a critical timeline for the implementation of the GENIUS Act: regulators must establish specific compliance guidelines for the customer identification program (CIP) rules in the GENIUS Act by July 18, 2026, determining which stablecoin issuers can legally operate within the U.S. This deadline is only 4 days away------if the CIP rules are implemented on time, SoFiUSD, as a stablecoin directly issued by a national bank regulated by the OCC (SoFi Bank, N.A.), is expected to automatically obtain the clearest compliance recognition, compared to Tether (USDT, registered in the British Virgin Islands) which has a first-mover compliance advantage under the U.S. regulatory framework; if the CIP rule details are vague or delayed, it will create short-term regulatory arbitrage opportunities for all non-bank stablecoin issuers. SoFi's Q1 cryptocurrency trading revenue was $121.6 million, with a net income of $852,000 after deducting costs from the cryptocurrency department.
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