Tether Rejects Claims It May Need to Sell Bitcoin to Comply with Potential U.S. Stablecoin Regulations

Tether, the issuer of the USDt stablecoin, has rejected claims from JPMorgan analysts suggesting it may need to sell Bitcoin to comply with potential

Stablecoin issuer Tether has refuted claims from JPMorgan analysts that it may have to sell Bitcoin to comply with potential U.S. stablecoin regulations.

On February 12, a report led by JPMorgan strategist Nikolaos Panigirtzoglou suggested that proposed U.S. laws could require Tether to adjust its reserves, which may involve selling some of its Bitcoin (BTC) holdings.

Two legislative proposals for regulating stablecoins in the United States are currently being discussed.

The Stablecoin Transparency of Reserves and Uniform Safe Harbor Act (STABLE Act) and the Keep Innovation In New Money Stablecoins Act (GENIUS Act) both aim to provide a regulatory framework for digital assets pegged to the value of fiat currencies like the U.S. dollar.

The proposals differ in terms of the specific requirements they impose on stablecoin issuers, particularly with regard to the composition of their reserves.

According to the JPMorgan report, Tether’s reserves are 66% compliant with the STABLE Act and 83% compliant with the GENIUS Act, indicating that adjustments would be necessary under the proposed rules.

However, Tether CEO Paolo Ardoino took to social media platform X to respond to the claims made by the JPMorgan analysts.

In a series of posts, Ardoino appeared to criticize the analysts for not holding enough Bitcoin, suggesting that this may be influencing their commentary on Tether's reserves.

“JPM analysts are salty because they don't own Bitcoin,” one of Ardoino's posts reads.

“Tether analysts say that JPM doesn't have enough Bitcoin,” another post stated.

Addressing the broader regulatory concerns, Ardoino highlighted that the stablecoin legislation is still being discussed and many details will be defined in upcoming consultations.

He further noted that even in a “worst-case scenario,” Tether's group equity — on top of stablecoin reserves — is over $20 billion in other highly liquid assets.

According to Ardoino, the company generates over $1.2 billion in quarterly profits from U.S. Treasuries, excluding other investments and activities.

“We have one of the best risk management strategies in the industry,” Ardoino concluded, adding that JPMorgan may be missing out on Bitcoin and hence, “commenting on Tether to distract.”