Tether Slams JPMorgan: No Bitcoin Sale Needed for US Stablecoin Rules

Tether, the issuer of the USDt stablecoin, has slammed JPMorgan analysts for suggesting that it may need to sell Bitcoin to comply with proposed stablecoin regulations in the United States. In a report released on Feb. 12, a team of analysts led by JPMorgan strategist Nikolaos Panigirtzoglou suggested that the proposed US stablecoin bills could force Tether to sell some of its Bitcoin (BTC) holdings.

Tether has criticized the analysts for not understanding "neither Bitcoin nor Tether," highlighting that the US stablecoin laws are yet to be finalized. The company has also emphasized that it is closely monitoring the evolution of the different US stablecoin bills and actively engaging with local regulators.

Two key pieces of legislation have been introduced in the US to regulate stablecoins. The first is the "Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act," introduced by Senator Bill Hagerty on Feb. 4, 2025. This bill aims to establish a federal licensing and supervisory framework for stablecoins and their issuers. The second is the "Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act," a discussion draft released by House Financial Services Committee Chairman French Hill and Representative Bryan Steil on Feb. 6, 2025. This draft reportedly aligns with the GENIUS Act and is designed to offer a companion legislative process in the House of Representatives.

JPMorgan analysts highlighted that reserve requirements under the STABLE Act are stricter, allowing stablecoin issuers to only hold insured deposits, US T-bills, treasury short-term repo, and central banks reserves. In contrast, the Senate bill allows additional instruments such as money market funds and reverse repos. 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, which could require Tether to replace its non-compliant assets with compliant assets.

Tether CEO Paolo Ardoino responded to the suggestions by JPMorgan analysts, stating that the company's Group equity is over $20 billion in other liquid assets and it has more than $1