Tether's USDT Faces $47 Billion Reserve Gap Under GENIUS Act

Tether's USDT stablecoin faces a significant challenge in meeting the reserve requirements under the U.S. GENIUS Act, which aims to regulate payment stablecoins.

The company has approximately $190 billion in reserves backing its tokens, but roughly $47 billion of that amount is not eligible under the new framework.

This represents about 25% of Tether's reserve assets and includes categories such as precious metals, Bitcoin, secured loans, public equities, and other investments.

The majority of reserves are already in highly liquid dollar assets like U.S. Treasury bills, overnight reverse repurchase agreements, and term reverse repos.