JPMorgan analysts believe that Tether will have to sell some of its assets to comply with US stablecoin regulations. In fact, the analysts suggested that Tether sell Bitcoin, precious metals, corporate paper, and secured loans. Tether, being the largest stablecoin company, could find itself in trouble over newly introduced regulations.
The STABLE Act sets stricter reserve standards and grants states the authority to regulate. Meanwhile, the GENIUS Act requires federal oversight of large issuers and allows the utilization of a broader range of reserve assets.
Digital Assets Subcommittee Chairman Bryan Steil commented on the new stablecoin regulations and stated, “By implementing a clear regulatory structure for payment stablecoins, we can support continued innovation, bolster the US dollar’s position as the world’s reserve currency, and protect consumers and investors.”
The JPMorgan analysts further indicated, “US stablecoin regulations requiring more transparency and frequent reserve audits pose additional challenges to Tether.” According to the analysts, 34% of Tether’s reserves would be noncompliant.
BREAKING: JPMorgan predicts Tether may need to sell $BTC to align with proposed U.S. stablecoin regulations.
For context, Tether is among the world’s largest BTC buyers, holding nearly 85,000 BTC. If they opt to sell and cease purchases, BTC might plunge far below $10K once again. — Jacob King (@JacobKinge) February 13, 2025
Explore: Tether’s USDT To Be Delisted On Crypto.Com, Nine Other Tokens At Risk
“JPM analysts are envious because they lack Bitcoin,” States Tether CEO Paolo Ardoino
Tether CEO Paolo Ardoino swiftly dismissed the advice from JPMorgan analysts.
On February 13, 2025, Ardoino criticized the recommendation, stating, “Tether analysts note that JPM does not hold sufficient Bitcoin.”
JPM analysts are envious because they don’t own Bitcoin. — Paolo Ardoino 🤖🍐 (@paoloardoino) February 13, 2025
In a conversation with 99bitcoins, when asked about the proportion of his portfolio attributed to Bitcoin and Ethereum, Ardoino mentioned that only 0.01 was assigned to Ethereum, while the remainder consists of Bitcoin. “Everything else is Bitcoin,” Ardoino remarked.
Tether analysts determine that JPM lacks sufficient Bitcoin. — Paolo Ardoino 🤖🍐 (@paoloardoino) February 13, 2025
This situation may not be favorable for Tether as Ardoino recently indicated the company might consider enhancing its presence in the US. In an interview with Bloomberg TV on January 16, 2025, Ardoino underscored the necessity for clarity before executing any major decisions.
“Currently, we need regulatory clarity and guidance. We must observe the upcoming laws from the US, and then we will decide.”
Explore: Tether CEO Hints At Expanding US Presence Amid Regulatory Uncertainty
Investment In Zengo Wallet To Promote Global Stablecoin Adoption
Tether has announced a collaboration with Zengo Wallet to advance global stablecoin adoption.
On February 11, 2025, Tether issued a press release revealing its partnership with Zengo Wallet “to facilitate secure self-custody solutions and drive the global adoption of stablecoins.”
Commenting on the cooperation, Ardoino stated, “Tether is dedicated to providing reliable and secure tools that empower users to control their digital assets. Our investment in Zengo embodies that commitment.”
“Together, we are shaping the future of how stablecoins are utilized and accepted,” Ardoino remarked.
Israel’s Zengo Wallet is regarded as a secure wallet with over 1.5 million users globally and showcases an impressive record of “protecting digital assets without a single wallet being hacked, phished, or compromised.”
“Stablecoins are vital for fostering an inclusive financial future,” said Ouriel Ohayon, Zengo’s Co-founder and CEO. “We are thrilled to partner with Tether to simplify, secure, and democratize self-custody.”
