GENIUS Act Rules Are Reshaping the USDC vs. USDT Battle

Last night, UK time, the Office of the Comptroller of the Currency finalized rules implementing the GENIUS Act, establishing federal requirements for stablecoin reserves, redemptions, risk management, reporting and supervision with an effective date of January 18, 2027. The framework applies as Circle’s USDC and Tether’s USDT compete in a market where USDT holds 60.7% and USDC 23.9%, together 84.6%. It bars issuers from directly paying interest or yield merely for holding payment stablecoins but allows regulators to review third-party reward programs case by case. Further implementation, including anti-money laundering and sanctions compliance requirements, remains ahead.