Tether CEO refutes JP Morgan’s bitcoin sell-off prediction

According to the financial giant, regulatory changes could force the company to sell off bitcoins

14.02.2025 - 12:25

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What’s new? JP Morgan has sparked controversy with its recent claims that Tether (USDT), the largest issuer of stablecoins, may be forced to sell off some of its assets in BTC to comply with new US regulations on stablecoins. However, Tether CEO Paolo Ardoino was quick to deny the claims, taking to social media to criticize the banking giant. On platform X (Twitter), Ardoino mocked JP Morgan analysts, stating:

“JPM analysts are salty because they don’t own Bitcoin.”

Considering that Tether currently owns approximately 83 758 BTC, which is valued at over $8 billion, any major sell-off could significantly impact the cryptocurrency market.

What else is known? Two bills are pending in the United States to regulate stablecoins: the stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act in the House and the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act in the Senate.

Both bills aim to impose stricter reserve management rules and ensure that stablecoins maintain 1:1 collateralization with liquid assets such as US Treasuries. According to JP Morgan analysts led by Nikolaos Panigirtzoglou, only 66% of Tether’s reserves meet compliance standards under the STABLE Act, whereas under the GENIUS Act, the figure rises to 83%.

A JP Morgan report said that if either bill is passed, Tether will be required to shift a significant portion of its assets to more liquid assets. Regulatory pressure on Tether is not limited to the US. The stablecoin issuer has already faced obstacles in Europe, where the Markets in Crypto-Sssets (MiCA) regulation requires large issuers to hold 60% of their reserves in EU banks. This has led to Tether being delisted from several European exchanges.

Despite JP Morgan’s warning, Tether’s financial position remains strong. In its Q4 2024 report, Tether said its reserve buffer exceeded $7 billion, and the company recorded a profit of $13 billion for the year.

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