The USDT Tether issuer could face challenges if the regulations proposed by the United States are adopted, and the company may have to sell some of its reserves to comply with the new rules, JPMorgan (JPM) said on Wednesday in a report research.
The law on the orientation and establishment of national innovation of the Senate for the Stablescoins (Engineering) law obliges federal regulations for stablescoins with a market capitalization of more than $ 10 billion, noted the report, With the state regulation potential if it aligns with federal rules. The stable law of the House of Representatives provides for state regulations without any condition.
“The reserve requirements under the stable act are more strict, allowing insured deposits, American T tickets, short -term references of the treasury and central banks”, analysts led by Nikolaos Panigirtzoglou wrote, adding that the Senate bill also allows money market funds and inverted deposits.
“The two invoices only authorize high quality and liquid assets as reservations,” wrote the authors.
The attachment dominates the universe of Stablecoin with a market share of 60%. The USDT has a market capitalization of around $ 142 billion. JPMorgan said that the issuer’s reserves are “only 66% in accordance with stable law and 83% under the law on engineering”, citing business reports.
In addition, “the two figures suggest a declining compliance ratio since the middle of last year while Stablecoin’s offer jumped,” added the bank.
Under the proposed regulations, TETHER should replace assets that are not in accordance with assets, according to the report. This implies “sales of their non -compliant assets (such as precious metals, bitcoin (BTC), corporate paper, guaranteed loans and other investments) and purchases of compliant assets such as boxes in T “.
“Tether closely monitors the evolution of the various bills on stablescoin and also acts actively with local regulators. Industry consultation must occur and it is not yet clear what bill goes to The front, “said a Tether spokesperson in the comments sent by e-mail.
“Even in the most extreme scenario, JPMorgan reduces the fact that the equity of the Tether group exceeds $ 20 billion in other very liquid assets and generates more than $ 1.2 billion in profits per quarter by means of American treasures.
Tether CEO Paolo Ardoino said in a tweet on X Thursday after the bank’s report that “JPM analysts are salted because they do not have bitcoin”.
New rules calling for increased transparency and more frequent reserve audits could also pose other challenges for the attachment, added the report.
Find out more: Stablecoin regulations could pose problems in Tether, says Jpmorgan; The USDT transmitter claims bitter grapes
