The “compliance sheen” around stablecoins has now been directly peeled back—at least in part—by BPI.
BPI research shows that, by circulation, only USDC and PYUSD among the top 10 U.S. dollar stablecoins meet the reserve requirements of the GENIUS Act, which takes effect on January 18, 2027. They account for 26% of global circulation; the remaining 72% are not covered because they are issued offshore or backed by crypto assets. Major stablecoins such as USDT and DAI have yet to fully pass muster. The top 10 stablecoins together account for 97% of market circulation. Compliant USDC has over $73 billion in circulation, with about 70% of its reserves backed by Treasury-secured reverse repos. The entity operating USDT is based in El Salvador, and 29% of its reserves are risk assets such as gold, stocks, and Bitcoin.
The report concludes that reserve requirements can help reduce the likelihood of a depeg. However, both compliant and noncompliant stablecoins have depegged in the past, and compliance does not mean there is no risk.
Two scenarios to watch: If enforcement deadlines take effect, stablecoins that fail to meet the requirements may face restrictions on access to the U.S. market, exchange listings, and institutional use of funds. If USDT completes its audits and licensing requirements within the transition period, the pace of fund diversion may slow.
Are you more focused on the GENIUS Act’s implementation timeline and penalties, or on whether USDT can complete its audits and licensing requirements within the transition period?
Source: Odaily Planet Daily
Image 1: GENIUS Act compliance screening: Only USDC and PYUSD among the top 10 U.S. dollar stablecoins meet the requirements · Image from the source report
Image source: https://www.odaily.news/zh-CN/post/5213845
BPI research shows that, by circulation, only USDC and PYUSD among the top 10 U.S. dollar stablecoins meet the reserve requirements of the GENIUS Act, which takes effect on January 18, 2027. They account for 26% of global circulation; the remaining 72% are not covered because they are issued offshore or backed by crypto assets. Major stablecoins such as USDT and DAI have yet to fully pass muster. The top 10 stablecoins together account for 97% of market circulation. Compliant USDC has over $73 billion in circulation, with about 70% of its reserves backed by Treasury-secured reverse repos. The entity operating USDT is based in El Salvador, and 29% of its reserves are risk assets such as gold, stocks, and Bitcoin.
The report concludes that reserve requirements can help reduce the likelihood of a depeg. However, both compliant and noncompliant stablecoins have depegged in the past, and compliance does not mean there is no risk.
Two scenarios to watch: If enforcement deadlines take effect, stablecoins that fail to meet the requirements may face restrictions on access to the U.S. market, exchange listings, and institutional use of funds. If USDT completes its audits and licensing requirements within the transition period, the pace of fund diversion may slow.
Are you more focused on the GENIUS Act’s implementation timeline and penalties, or on whether USDT can complete its audits and licensing requirements within the transition period?
Source: Odaily Planet Daily
Image 1: GENIUS Act compliance screening: Only USDC and PYUSD among the top 10 U.S. dollar stablecoins meet the requirements · Image from the source report
Image source: https://www.odaily.news/zh-CN/post/5213845
