JPMorgan analysts believe that Tether will have to sell some of its assets in order 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 lets states regulate. Meanwhile, the GENIUS Act requires federal oversight of large issuers and allows the use of a wider range of reserve assets.
Digital Assets Subcommittee Chairman Bryan Steil commented on the new stablecoin regulations and said, “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 said, “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 comply with proposed U.S. stablecoin rules.
For reference, Tether is one of the world’s largest BTC buyers, holding nearly 85,000 BTC. If (when) they sell and halt purchases, BTC will easily crash far below $10K 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 salty because they don’t own Bitcoin,” Says Tether CEO Paolo Ardoino
Paolo Ardoino, Tether CEO quickly rejected the suggestion offered by JPMorgan analysts.
Through a post on X on 13 February 2025, Ardoino slammed the suggestion. He said, “Tether analysts say that JPM does not have enough Bitcoin.”
JPM analysts are salty because they don't own Bitcoin.
— Paolo Ardoino 🤖🍐 (@paoloardoino) February 13, 2025
In an interview with 99bitcoins, when Ardoino was asked what percentage of his portfolio was Bitcoin and Ethereum, he said only 0.01 was allocated to Ethereum. “The rest is Bitcoin,” Ardoino had said. “Everything else, Bitcoin.”
Tether analysts say that JPM does not have enough Bitcoin
— Paolo Ardoino 🤖🍐 (@paoloardoino) February 13, 2025
This situation may not be ideal for Tether as Ardoino recently indicated that the company may consider increasing its presence in the US. Speaking to Bloomberg TV on 16 January 2025, Ardoino emphasized the importance of clarity before making any significant moves. “I cannot exclude Tether moving a bit more toward some US presence, but we are also doing that in a cautious way,” he stated.
“For the moment, we need regulatory clarity and guidance. We need to see what the laws are looking like coming from the US, and then we will decide.”
Explore: Tether CEO Hints At Expanding US Presence Amid Regulatory Uncertainty
Investment In Zengo Wallet To Advance Global Stablecoin Adoption
Tether has announced partnering with Zengo Wallet to promote global stablecoin adoption.
On 11 February 2025, Tether issued a press release announcing its partnership with Zengo Wallet “to advance secure self-custody solutions and drive the global adoption of stablecoins.”
Commenting on the collaboration, Ardoino said, “Tether is committed to delivering reliable and secure tools that empower users to take control of their digital assets. Our investment in Zengo reflects that commitment.”
“Together, we are shaping the future of how stablecoins are used and adopted,” Ardoino added.
Israel’s Zengo Wallet is touted to be a safe wallet with over 1.5 million users worldwide. The company boasts “protecting digital assets without a single wallet being hacked, phished, or taken over.”
“Stablecoins are the cornerstone of an inclusive financial future,” said Ouriel Ohayon, Zengo’s Co-founder and CEO. “We are proud to partner with Tether to make self-custody simple, secure, and accessible.”
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