American lawmakers currently review two major stablecoin regulation proposals which include the STABLE Act at the House and the GENIUS Act in the Senate. Stablecoin issuers will need to obtain licenses while satisfying reserve backing policies under these proposed regulations.
JPMorgan’s Assessment
According to the bank’s analysts Tether satisfies 66% of the criteria outlined in the STABLE Act and 83% of GENIUS Act criteria. The analysts predict that Tether would have to sell its Bitcoin and other assets to meet the proposed regulatory requirements.
Tether’s Response
The stablecoin issuer vigorously refutes JPMorgan‘s analysis because it possesses substantial financial resources. Tether possesses over $20 billion in liquid assets and generates $1.2 billion in quarterly profits from US Treasuries which allows the company to meet all proposed regulatory requirements without difficulty.
Market Position
Tether exists as the largest stablecoin by market value which surpasses $140 billion while holding 83,758 BTC worth approximately $7.8 billion. The company stays actively involved with regulators and watches for new legislation.
Regulatory Context
During this exchange Tether defended its robust financial condition against JPMorgan’s regulatory concerns about crypto companies.
