Tether has firmly rejected claims made by JPMorgan analysts regarding its Bitcoin reserves and its ability to comply with upcoming US stablecoin regulations.
In a February 13 statement to CryptoSlate, the stablecoin issuer emphasized that it is actively monitoring regulatory developments in the US while engaging with local regulators.
Tether acknowledged ongoing discussions about proposed stablecoin legislation but maintained that it remains uncertain which bill, if any, will advance.
JPMorgan’s Analysis and Regulatory Speculation
JPMorgan analysts suggested that if proposed US stablecoin laws take effect, Tether may need to sell some of its Bitcoin holdings to meet new regulatory standards.
The analysts noted that certain assets—Bitcoin, precious metals, corporate paper, and secured loans—could be impacted under stricter regulatory oversight.
Currently, two bills are under review in the US Congress:
- Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act (House)
- Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act (Senate)
Both bills propose tighter regulations for stablecoin issuers, including:
- New licensing requirements
- Stricter risk management guidelines
- Revised reserve backing policies
JPMorgan’s evaluation suggests that Tether’s reserves meet 66% of the STABLE Act’s requirements and 83% of the GENIUS Act’s criteria. Based on this, the analysts speculated that Tether might need to adjust its reserve composition to fully comply with potential regulatory mandates.
Tether’s Response: Strong Financial Position and No Need to Sell Bitcoin
Tether dismissed these concerns, asserting that it holds excess liquidity and can adapt to regulatory changes even in the most restrictive scenarios.
The company highlighted its strong financial position, stating:
“Even in the most extreme scenario, JPMorgan discounts the fact that Tether’s Group equity is over $20 billion in other very liquid assets and is generating more than $1.2 billion in profits per quarter through US Treasuries. Adapting new requirements will be straightforward.”
Tether also took a direct swipe at JPMorgan, hinting that analysts might be frustrated over the bank’s failure to acquire Bitcoin at lower prices. The firm further argued that JPMorgan lacks an understanding of Bitcoin and its USDT stablecoin.
Tether CEO Paolo Ardoino commented on X:
“JPM analysts are salty because they don’t own Bitcoin.”
Tether’s Market Standing and Bitcoin Holdings
According to CryptoSlate’s data, USDT remains the largest stablecoin with a market capitalization exceeding $140 billion. In its latest quarterly report, the firm disclosed holdings of 83,758 BTC, valued at approximately $7.8 billion.
Tether’s response underscores its confidence in navigating regulatory challenges without liquidating its Bitcoin reserves. As stablecoin regulations evolve, the market will watch closely how Tether and other issuers adapt while maintaining their financial stability and competitive edge.
