US Treasury Proposes Rules That Could Ban USDT on Coinbase by 2027

The US Treasury has proposed new rules under the GENIUS Act that could force US exchanges like Coinbase to stop offering Tether's USDT stablecoin to American users starting January 18, 2027. This move follows a similar decision in Europe under the MiCA regulation, which led to USDT being delisted there.

Tether responded by creating a compliant US domestic stablecoin called USAT while keeping USDT offshore. However, it's not clear if this will be enough for exchanges to comply with the new rules.

The proposed rule is still in its comment period, and final decisions could allow some foreign issuers to comply if their home regulations are deemed comparable to US standards.