Stablecoin News: Tether Risks USDT Delisting In The US

Key Insights:

• The latest stablecoin news showed that Tether risks USDT delisting from US exchanges by July 2028 if it fails to comply with the GENIUS Act requirements.
• The GENIUS Act is pushing capital to compliant stablecoins, with Circle’s USDC a major beneficiary.
• USDG deposits on Aave V4 surpass $50 million, and Kraken expands USD-settled crypto derivatives.

Latest stablecoin news reveals Tether is facing a major regulatory threat. The world’s largest stablecoin risks full USDT delisting from all US exchanges by 2028 if it fails to comply with the GENIUS Act.

According to Coin Bureau, Tether has not yet fully complied with the GENIUS Act, as regulators demand cash and Treasuries only. About 25% of Tether USDT reserves are still non-compliant, the report added.

This includes precious metals, lending, and Bitcoin. Paolo Ardoino promised compliance a year ago. Tether now holds about $184-187 billion in USDT in circulation.

Having said that, the USDT delisting by 2028 is based on the current market scenario, and the regulatory outcomes are uncertain and subject to change.

GENIUS Act Pushes Non-Compliant Stablecoins Out As Circle Stock Gains Momentum

The Genius Act has pushed for all compliant issuers to follow strict rules on reserves, audits, and operations. This has capped the wings of Tether’s mix of assets, including the newly launched compliant USA₮ version.

However, the USDT itself remains at risk. Moreover, the potential downside for Circle could be a severe decline in users, threatening its current stablecoin market dominance.

While Tether USDT staggers under regulatory pressure, Circle stock continues to gain momentum, among other crypto stocks. The company has been benefiting from the flight to quality. As of writing, the CRCL stock price was up around 8% and traded at $65.10, Yahoo Finance data showed.

USDC offers the compliance, transparency, and institutional trust that USDT now struggles to deliver. The pattern is clear, and headlines about USDT risk have been linked to upward pressure on Circle-related sentiment and flows.

Traders and investors have rotated from the old guard into the new one. They have positioned for the post-2028 world where only clean stablecoins survive on US soil.

While that is pending, Tether still dominates global trading volume for now. But the US market matters, and the GENIUS Act has drawn a hard line.

Circle has already positioned itself on the right side of that line. The ball is now in Tether’s court, as the pressure mounts for it to sort out its compliance issues.

The next two years will test which stablecoin adapts and which one gets delisted. Circle stockholders have bet big on the winner, and so far, the trade has paid off.

A delisting would reflect a dramatic loss of volumes, especially from the US market. This is because USDT remains the dominant stablecoin, especially for retail.

USDG Deposits Surge Past $50 Million as Kraken Launches USD-Settled BTC and ETH Futures

In other developing stablecoin news, USDG deposits on Aave V4 have smashed through $50 million. This was fueled by a 25% surge in the last four weeks, TokenLogic reported.

The growth indicates real capital dropping into regulated stablecoins rather than just passing through.

Meanwhile, more stablecoin news confirms Kraken has rolled out fresh USD-settled Bitcoin and Ethereum options and futures. The contracts do not need any crypto security and will be sitting neatly alongside spot trading.

The exchange calls out the old “design, not demand” problem in crypto derivatives. This move makes it easier for fiat money to enter without touching volatile assets directly. Furthermore, it favours regulated, USD-native infrastructure.

The post Stablecoin News: Tether Risks USDT Delisting In The US appeared first on The Coin Republic.