
Tether Forced To Sell Bitcoin? New Stablecoin Rules
JPMorgan warns: new stablecoin regulations could force Tether to sell Bitcoin. Ardoino responds to the accusations.
JPMorgan warns: new stablecoin regulations could force Tether to sell Bitcoin. Ardoino responds to the accusations.
Get the latest news, learn from experts, discover new tools, and find inspiration right in your inbox.
No spam. Unsubscribe anytime.
According to JPMorgan, Tether may have to sell its Bitcoins to comply with new stablecoin regulations. Paolo Ardoino, CEO of Tether, addressed the issue on social media, disputing these claims.
The US is introducing new regulations for stablecoins, which include stricter compliance requirements and guaranteed reserves. Tether has already suspended operations in Europe after similar regulations, but it cannot afford to fail in the US market.
Selling Bitcoin To Survive: Will Tether Do It?
Tether, a leader in the cryptocurrency industry, has achieved extraordinary results in 2024. Despite the difficulties it faced, the stablecoin issuer posted record profits.
However, according to JPMorgan, Tether may have to sell its Bitcoins. The CEO responded firmly:
JPMorgan analysts claim that new US stablecoin regulations will force Tether to liquidate its Bitcoin reserves. Currently, several bills are being debated in the Senate, many of which support requiring stablecoin issuers to hold reserves in the United States.
The bill with the greatest chance of passage is the "GENIUS Act, introduced by Tennessee Senator Bill Hagerty. According to the measure's requirements, only 83% of tether reserves would comply. Other bills, however, appear more restrictive and could result in further losses for Tether.
This highlights the imminent arrival of stablecoin regulations in the US. The bills have the support of both Federal Reserve Chairman Jerome Powell and bipartisans. If Congress and regulators want to implement these measures, it is almost certain that they will be passed.
Why Should Tether Sell Its Bitcoins?
The new regulations will change how Tether's reserves are managed. According to the proposals, the company would have to convert part of its liquid reserves into US Treasury bonds or other secured forms of investment. In other words, this regulatory framework does not fully support decentralisation.
Last December, Tether was excluded from the European market due to new rules introduced by the MiCA. However, the company could afford to lose Europe, while the US market is crucial, especially considering that several US exchanges might abandon stablecoin.
Faced with the situation, Ardoino expressed his disappointment on social media, attracting attention but also raising doubts about his strategy. Some analysts believe that Tether has avoided thorough audits in the past and that these new transparency regulations may uncover uncomfortable secrets.
Read Next
Tether strengthens its stake in Juventus
Tether increases its stake in Juventus, strengthening the link between cryptocurrency and mainstream sport.
International Payments in USDC: Challenge to Visa
Circle launches a global payments network in USDC, aiming to become a real alternative to Visa and Mastercard in the fintech sector.
Belarusian Digital Ruble Coming in 2026
Belarus will launch the digital rouble in 2026 to ensure financial security and facilitate cross-border payments, in cooperation with Russia.
PayPal Adds Solana and Chainlink to its Crypto Services
PayPal extends crypto support to Solana and Chainlink, expanding its digital wallet for millions of users and strengthening Web3 adoption.