TREE NEWS reports: Only two of the ten largest dollar stablecoins, Circle’s USDC and Paxos’s PYUSD, hold reserves compliant with the GENIUS Act, which takes effect January 18, 2027, the Bank Policy Institute found. Those two account for 26% of circulating supply as of June 30, 2026. Another 72% do not qualify: 65% are offshore-issued, including Tether’s USDT, and 7% are crypto-backed, such as Sky Protocol’s USDS and DAI.
BPI: Only USDC, PYUSD Meet GENIUS Stablecoin Reserve Rules
The headline compliance gap is less striking than its composition: the bulk of non-qualifying supply is offshore-issued rather than crypto-backed, which puts the regulatory question squarely on issuer domicile and reserve structure ahead of the 2027 effective date. That split matters for how the market reallocates between compliant and non-compliant tokens, and for the offshore issuers weighing whether to restructure reserves or accept a smaller addressable US market. The open question is whether the 26% compliant share grows through reserve changes at existing issuers or through migration of liquidity toward the two that already qualify.
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