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Is Tether (USDT) a security?

#3 by market cap · Last updated Oct 19, 2026 (evidence re-checked)
$0.9993 ▲ 0.01%Mkt cap $183.5B

At a glance

Payment stablecoin
  • Confidence
  • US exchange accessNot on Coinbase US list
  • Regulator (if enacted)GENIUS Act regulators (OCC / states)
  • Evidence6 sources · 4 official

Is USDT a regulated payment stablecoin?

Likely a payment stablecoin under the GENIUS Act, with confidence capped at Medium until the Act takes effect.

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What this means for you

GENIUS Act rules are still being written. From the expected effective date (Jan 18, 2027), US platforms may only offer payment stablecoins that meet the Act's issuer rules. Check whether your platform will keep supporting this one.

What should I do if my token is "stablecoin"? →

Stablecoin law 3Exchange listing 1Regulator 1Enforcement 14 official2 third-party

Why this status

  • R1: centralized USD stablecoin; GENIUS Act framework applies (law since Jul 18, 2025; expected effective Jan 18, 2027).
  • Issuer is outside the US, so US availability depends on foreign-issuer rules (from Jan 2027) and licensed-issuer rules (from Jul 2028). Capped at Medium.

Decentralisation ("mature blockchain" test): Centrally issued by Tether (issuer-controlled, by design).

Evidence (6 sources)

4 official
  1. Exchange listingThird-partyAbsent / not foundOct 19, 2026 · Coinbase

    USDT does not appear on Coinbase's 'US (incl. NY) Trading Assets' list (other US platform availability not verified).

    Coinbase Digital Asset Disclosures: 'US (incl. NY) Trading Assets' list ↗
  2. Stablecoin lawOfficial sourceAug 17, 2026 · U.S. Treasury

    From the expected effective date (Jan 18, 2027), US platforms may offer foreign-issued payment stablecoins only if the issuer can comply with lawful orders; from Jul 18, 2028 only licensed-issuer stablecoins may be offered to US persons.

    Treasury seeks comment on GENIUS Act proposed rule; expected effective date Jan 18, 2027; licensed-issuer requirement for US offers from Jul 18, 2028 ↗
  3. Stablecoin lawThird-partyJan 27, 2026 · Tether

    Tether launched a separate US-focused stablecoin, USA₮ (USAT), issued by Anchorage Digital Bank. USDT continues as a separate global token.

    Tether announces the launch of USA₮ ↗
  4. Stablecoin lawOfficial sourceJul 18, 2025 · Congress.gov

    Payment stablecoins are governed by the GENIUS Act. USDT is issued by a non-US Tether entity.

    GENIUS Act (S. 1582) signed into law, Public Law 119-27 ↗
  5. RegulatorOfficial sourceMar 27, 2023 · CFTC

    CFTC complaint against Binance states USDT is a 'commodity' (pre-GENIUS Act).

    CFTC charges Binance and Changpeng Zhao (complaint ¶24 names BTC, ETH, LTC, USDT and BUSD as commodities) ↗
  6. EnforcementOfficial sourceOct 15, 2021 · CFTC

    CFTC ordered Tether entities to pay a $41M civil penalty over misleading statements about USDT reserves (2016–2019).

    CFTC orders Tether and Bitfinex to pay fines totaling $42.5 million ↗

Rules by country

🇺🇸United States
Stablecoin

Payment stablecoin (ClarityCheck estimate, medium confidence). The CLARITY Act is not law, so today the SEC's and CFTC's existing frameworks apply. The GENIUS Act (signed Jul 18, 2025) takes effect by Jan 18, 2027 at the latest.

🇪🇺European Union (MiCA)
Not in ESMA's EMT register

Not found in ESMA's interim MiCA register of e-money token issuers (checked Oct 19, 2026). Under MiCA, EU platforms restricted non-compliant stablecoins for EEA users in 2024–25. See the delisting tracker. ESMA register ↗

🇬🇧United Kingdom (FCA)
Firm rules from Oct 25, 2027

The UK's new FCA cryptoasset regime starts on Oct 25, 2027. Firms can apply from Sept 30, 2026 until Feb 28, 2027. There's no token-by-token classification list; the rules apply to the firms that offer the token. FCA ↗

USDT questions

Is Tether (USDT) a security?

A payment stablecoin issued by a permitted issuer is excluded from the definition of "security" by the GENIUS Act (Section 17). ClarityCheck rates USDT as a likely payment stablecoin (medium confidence). The Act takes effect by Jan 18, 2027 at the latest. Not legal advice.

Can I buy USDT on US exchanges?

US access: Not on Coinbase US list. Availability can differ by state and by exchange. See our exchange safety checker.

What would the CLARITY Act change for USDT?

GENIUS Act rules are still being written. From the expected effective date (Jan 18, 2027), US platforms may only offer payment stablecoins that meet the Act's issuer rules. Check whether your platform will keep supporting this one.

How reliable is this USDT status?

Confidence is Medium. It comes from fixed rules applied to 6 cited sources (checked Oct 19, 2026), not from opinion. Statuses can change as courts, regulators and Congress act.

Change log

6 entries
  1. Status review
    Evidence-based review: status set to 'Payment stablecoin (GENIUS Act)' (Medium confidence) using ClarityCheck rules. Replaces earlier illustrative demo data.
  2. From the expected effective date (Jan 18, 2027), US platforms may offer foreign-issued payment stablecoins only if the issuer can comply with lawful orders; from Jul 18, 2028 only licensed-issuer stablecoins may be offered to US persons. Source ↗
  3. Tether launched a separate US-focused stablecoin, USA₮ (USAT), issued by Anchorage Digital Bank. USDT continues as a separate global token. Source ↗
  4. Payment stablecoins are governed by the GENIUS Act. USDT is issued by a non-US Tether entity. Source ↗
  5. CFTC complaint against Binance states USDT is a 'commodity' (pre-GENIUS Act). Source ↗
  6. CFTC ordered Tether entities to pay a $41M civil penalty over misleading statements about USDT reserves (2016–2019). Source ↗

Snapshot Oct 19, 2026 · Prices by CoinGecko