Will the GENIUS Act Split the Stablecoin Market?
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One year after the GENIUS Act, crypto attention is shifting from compliance to liquidity as Tether has until July 2028 to meet the law’s requirements, creating the risk of two separate stablecoin markets. Banks and large investors are expected to migrate toward fully regulated U.S. dollar stablecoins well before 2028, reshaping U.S. crypto liquidity, institutional adoption, and funding flows. USDT may remain dominant offshore while regulated stablecoins capture onshore custody and banking relationships, a development that is bullish for regulated stablecoin adoption and onshore liquidity.
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- One year after the GENIUS Act, stablecoin competition is shifting from compliance to liquidity.
- Institutions may migrate toward regulated stablecoins well before 2028, reshaping U.S. crypto markets.
- USDT may stay dominant offshore as regulated U.S. dollar stablecoins expand with financial institutions.
A year after the U.S. GENIUS Act became law, the biggest question isn’t whether Tether’s USDT will comply with the rules. It’s whether the law will create two separate stablecoin markets.
Tether has until July 2028 to meet most of the law’s requirements. But many in the industry believe banks and large investors won’t wait that long. They are expected to move toward fully regulated stablecoins well before the deadline, changing where liquidity flows.
Regulated Stablecoins Could Attract Institutions
The GENIUS Act requires approved stablecoins to be backed main…
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