US regulators miss GENIUS Act deadline, leaving 10 stablecoin rules unfinished

Not one of five federal agencies delivered final stablecoin rules by the GENIUS Act's statutory deadline, leaving issuers to navigate a framework that exists in law but not in regulation.

US federal regulators missed the GENIUS Act's July 18 deadline to finalize stablecoin implementing rules, issuing 10 proposals but zero final regulations one year after President Donald Trump signed the law.

"Non-compliant stablecoins cannot be used by US institutions when the safe harbor expires in 2028, but we don't expect the market to wait," Kevin Wysocki, head of policy at Anchorage Digital, said. "Institutional users will move toward compliant, bank-issued digital dollars well ahead of that deadline."

The Treasury Department published four proposals covering state regime certification, foreign issuer registration and anti-money laundering standards. The OCC issued two rules for nationally chartered issuers covering reserve assets, redemptions, capital and custody. The FDIC, NCUA and federal banking agencies jointly proposed separate frameworks. None advanced beyond the notice stage.

The missed deadline shortens the preparation window before the law takes effect Jan. 18, 2027, or 120 days after final rules — whichever comes later. For foreign issuers like Tether, a separate two-year compliance runway runs to July 2028, though lawyers disagree on whether that grace period applies to non-US firms. The OCC noted in a footnote that foreign issuers that do not meet certain requirements may face compliance obligations as early as January.

Tether faces a two-year countdown

Tether's USDT, the world's largest stablecoin by market cap, faces the most consequential compliance challenge under the new framework. As much as a quarter of USDT's reserves remain in assets that do not meet GENIUS Act standards, including precious metals, lending and bitcoin, according to the company's most recent disclosures.

CEO Paolo Ardoino said at the White House signing ceremony that "Tether will comply with the GENIUS Act" and indicated the company would pursue a separate US-specific token. Tether launched USAT this year through Anchorage Digital, though usage remains low. The company did not respond to requests for an update on its compliance stance.

Circle, Tether's chief US-based rival, has made more apparent progress toward pre-compliance with the federal framework.

CLARITY Act emerges as the next policy battleground

Anchorage Digital renewed its call for Congress to pass the Digital Asset Market Clarity Act, which would extend the stablecoin regulatory model to the broader digital asset market. The bill cleared the Senate Banking Committee in May.

Senator Cynthia Lummis linked the debate to customer protection, citing Celsius, Voyager and FTX as examples where lack of clear rules left customer assets treated as corporate property in bankruptcy. "Protecting customers in bankruptcy should not be a partisan issue," she said.

The CLARITY Act faces headwinds. Galaxy Digital cut its odds of passage in 2026 to 50% on June 26, citing no unified Senate text and a narrowing legislative window. Banking groups including the American Bankers Association and the Independent Community Bankers of America sent a joint letter July 13 opposing provisions that they said would let crypto firms offer yields on stablecoins without facing the same requirements as traditional banks.

CFTC Commissioner Mike Selig said the GENIUS Act "made America the crypto capital of the world" and that the agency would "build on that work by helping deliver CLARITY for the American people."

The next regulatory milestone arrives in January 2027, when the GENIUS Act's core provisions take effect — with or without final rules in place.

This article is for informational purposes only and does not constitute investment advice.