JPMorgan: "Tether May Need to Sell Bitcoin (BTC) and Other Assets to Meet Regulations"

As the US is expected to implement stablecoin regulations by the end of this year, analysis suggests that stablecoin issuer Tether (USDT) may need to sell assets including Bitcoin (BTC) to comply with regulations.

According to crypto media The Block on the 13th, global financial firm JPMorgan stated in a report that "if new stablecoin regulations such as the Stablecoin Act and Genius Act pass in the US, Tether will need to sell assets including Bitcoin, gold, and commercial paper, and restructure its reserves with US Treasury bonds or highly liquid assets."

The report explained that "only 66% of Tether's reserves meet regulations based on the Stablecoin Act. Based on the Genius Act, only 83% meet regulatory requirements."

Given Tether's high market share in the US market, regulatory risks are expected to be much greater. Previously, Tether was delisted from some European cryptocurrency exchanges as it failed to meet MiCA regulations requiring 60% of reserves to be held in European banks.

The report added that "US stablecoin regulations will demand more transparency and reserve audits from Tether," noting that "this will pose additional challenges for Tether."