Tether Dismisses JPMorgan’s Bitcoin Sale Suggestion

Tether has responded forcefully to recent comments from JPMorgan analysts who suggested that new US stablecoin regulations could force the company to liquidate some of its Bitcoin holdings.

The analysts, led by Nikolaos Panigirtzoglou, speculated that Tether might need to offload non-compliant assets like Bitcoin to comply with pending laws that would restrict reserve requirements for stablecoin issuers.

In a pointed rebuttal, Tether dismissed the analysts’ assertions, saying they lacked understanding of both the company’s operations and Bitcoin. A Tether spokesperson noted that the proposed legislation was still in its early stages, and the company is actively engaging with regulators to navigate the evolving landscape.

The regulatory framework in question comes from two proposed bills, the GENIUS Act and the STABLE Act, which aim to create stricter rules for stablecoin issuers. The STABLE Act, in particular, would mandate that reserves be held in highly liquid, government-backed assets, which would require Tether to adjust its current holdings significantly. The JPMorgan analysts suggested that Tether’s existing reserves are only partially compliant with these proposed regulations.

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Tether, however, remains confident in its position. The company emphasized its large liquid asset pool, including more than $20 billion in equity and significant profits from US Treasury holdings. In response to JPMorgan’s stance, Tether hinted that the analysts may be envious of missed opportunities to buy Bitcoin at lower prices, underscoring that they fail to grasp the broader value of both Bitcoin and Tether’s operational strategy.

Source

Kosta Gushterov