JPMorgan Analyst: Tether May Need to Sell Bitcoin to Comply with Proposed US Stablecoin Regulations

BlockBeats News, February 13th, according to The Block's report, a JPMorgan analyst stated that in order to comply with the proposed U.S. stablecoin regulatory requirements, Tether may need to sell some non-compliant assets—including Bitcoin, precious metals, corporate bonds, and secured loans.

The U.S. has introduced two stablecoin bills—the House's "Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act" and the Senate's "Guaranteeing Easy and Secure Transaction of Universal Settlements (GENIUS) Act"—aimed at regulating stablecoin issuers through licensing requirements, risk management rules, and 1:1 reserve backing.

According to the House's STABLE Act, Tether only has 66% of compliant reserves, while according to the Senate's GENIUS Act, the compliant reserve ratio is 83%, JPMorgan analyst Nikolaos Panigirtzoglou's team wrote in a report on Wednesday. Importantly, the analysts noted that both figures indicate a decline in Tether's compliance ratio since mid-2024, coinciding with the rapid increase in stablecoin supply.