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Tether Will Closely Monitor the Regulations
Tether fired shots at JPMorgan over its recent market report, hinting at new regulations affecting the company’s reserve. Analysts led by Nikolaos Panigirtzoglou might need to offload non-compliant assets like Bitcoin and precious metals by upcoming regulations. The bill will mandate stablecoin issuers to only hold insured deposits, short-term treasury repos, US T-bills, money market funds, etc.
“Tether, the largest stablecoin issuer with nearly 60% market dominance,…could face challenges under these proposed US stablecoin regulations. The current Tether reserves are only 66% compliant under the STABLE Act and 83% under the GENIUS Act. Under the proposed bills, Tether would have to implicitly replace its non-compliant assets with compliant assets,” JPMorgan noted.
The stablecoin issuer fired back, stating that the bank is unfamiliar with Bitcoin and Tether. They added that JPMorgan is jealous that it didn’t accumulate cheap Bitcoin and would not have an event to buy the assets at a low price. In previous years, centralized institutions stayed away from the crypto market, leaving decentralized finance (DeFi) to amass huge assets.
Furthermore, the firm would closely monitor emerging stablecoin regulations in the United States, noting that the bills are in the early stages and require community consultation. US compliance is important for Tether after recent headwinds in Europe, following the launch of the Markets in Crypto Assets (MiCA) regulation.
 
US Moves Ahead With Crypto Laws
The Trump administration hit the ground running with its pro-crypto mantra to usher in favorable regulations. First, Bitcoin-friendly nominations were made to key positions, coupled with good policy statements. The Securities and Exchange Commission (SEC) rolled out a task force to create a regulatory framework for the industry.
At the moment, two stablecoin bills have been introduced: the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act and the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. Furthermore, several states have proposed bills for Strategic Bitcoin Reserves, just like the U.S. Senate. Sen Cynthia Lummis introduced a bill for the country to purchase 1 million BTC to aid debt repayments.
