The USDT Tether issuer could face challenges if the regulation of the US stablecoin is approved of research on Wednesday.
The National Innovation Law for National Senate Innovation for the United States (Genius) demands the federal regulation of the stable with a market capitalization of more than $ 10 billion, the report said, with the state regulation potential if Align with federal rules. The stable law of the House of Representatives requires a state regulation without any condition.
“The reserve requirements under the stable law are stricter, allowing the insured deposits, the invoices in T of the United States, the Treasury Short -term repository and the reserves of central banks,” wrote the analysts led by Nikolaos Panigirtzoglou , he added that the Senate bill also allows monetary market funds and reverse rests.
“Both invoices allow only high quality assets and liquids as reservations,” wrote the authors.
Tether dominates the Stablecoin universe with a market share of 60%. USDT has a market capitalization of approximately $ 142 billion. JPMorgan said the sender reserves “are only 66% under the stable law and 83% under the genius law”, citing the company’s reports.
In addition, “both figures suggest a decline compliance relationship since the middle of last year as the Stablecoin supply increased,” the bank added.
According to the proposed regulations, Tether would have to replace non -compliant assets with other compliments, according to the report. This implies “sales of their non -compliant assets (such as precious metals, Bitcoin (BTC), corporate paper, insured loans and other investments) and purchases of compatible assets such as T invoices”.
“Tether is closely by monitoring the evolution of the different stablecoin invoices of the US In comments sent by email.
“Even on the most extreme stage, JPMorgan discounts the fact that Tether’s group capital exceeds $ 20 billion in other very liquid assets and is generating more than $ 1.2 billion in earnings per quarter through US Treasury. UU. Added.
The CEO of Tether, Paolo Ardoino, said on an X tweet on Thursday after the publication of the bank’s report that “JPM analysts are salty because they do not have Bitcoin.”
The new rules that request greater transparency and more frequent reserve audits could also raise additional challenges for Tether, the report added.
Read more: Stablecoin’s regulations could raise problems for tied, says JPMorgan; The USDT issuer claims sour grapes
