Woofun AI data shows that roughly 25% of Tether's USDT reserves are allocated to assets including Bitcoin, precious metals, and loans, which do not satisfy the GENIUS Act's mandate for high-liquidity backing such as cash and U.S. Treasury bonds. The legislation provides a three-year grace period, with approximately two years remaining before non-compliant stablecoins face trading restrictions on U.S. crypto platforms.

While Tether CEO Paolo Ardoino previously pledged compliance and the firm introduced the USAT stablecoin via Anchorage Digital, adoption remains limited. Legal interpretations vary on whether foreign issuers must immediately adhere to freezing orders upon the Act's expected implementation next January, though federal regulators have yet to finalize specific execution details. Tether has not commented on its current compliance status.