The public comment period on the US Treasury's proposed rule under the GENIUS Act closed on October 19, 2026. The rule decides who may issue, offer and sell payment stablecoins in the United States, and it sets January 18, 2027 as the date from which foreign issuers such as Tether must meet new conditions to keep serving US customers (Thomson Reuters, KPMG).
What Treasury proposed
The rule implements Section 3 of the GENIUS Act, which covers permitted payment stablecoin issuers and foreign payment stablecoin issuers. Two parts matter most for USDT:
- When a foreign issuer is not "issuing in the US". A foreign issuer is treated as not issuing a stablecoin in the United States if it is located outside the US, reasonably believes the recipient is outside the US, has policies to avoid issuing to US persons, and does not advertise to them.
- The January 18, 2027 deadline. From that date, a foreign issuer that wants to keep serving US customers must show it can comply with lawful orders, meet reciprocal requirements and register with the Office of the Comptroller of the Currency (OCC) under a comparable foreign supervisory regime.
Businesses that offer foreign-issued stablecoins would also have to do reasonable due diligence before relying on the issuer's promises.
Where USDT and USAT fit
| USDT | USAT | |
|---|---|---|
| Issuer | Tether, outside the US | Tether, built for the US framework |
| Launched | 2014 | January 31, 2026 |
| Market | Global | United States |
| Scale (Oct 2026) | About $184 billion, around 60% of all stablecoins | Much smaller, new |
Tether's answer to US rules is a second token rather than changing USDT. USDT remains the global dollar stablecoin on TRON, Ethereum, Solana, TON, BNB Chain and other networks.
What it means for USDT holders
- Nothing changes on-chain today. The rules apply to issuers and to the businesses that sell or offer stablecoins.
- US platforms may adjust. Exchanges and apps serving US customers could change how they offer USDT once the final rule is out. Watch their notices before January 18, 2027.
- Holding both is easy. Gem Wallet, our top pick, supports both USDT and USAT in one self-custody app, so you can hold or swap between Tether's global and US tokens without an exchange account.
- Regions are splitting. The EU has told licensed platforms to wind down non-MiCA stablecoins by January 8, 2027 (our report). A self-custody wallet with built-in swaps keeps your options open whichever rules apply where you live.
Compare self-custody wallets in our ranking of the best USDT wallets.