Tether May Sell Bitcoin Amid New U.S. Stablecoin Laws
Financial giant JPMorgan suggests that Tether may need to sell part of its reserves, including Bitcoin, bonds, and precious metals, in response to proposed stablecoin regulations.
Currently, two key bills are under consideration: STABLE (in the House of Representatives) and GENIUS (in the Senate). According to JPMorgan’s research, Tether’s reserves do not fully meet these new regulatory standards. Under the STABLE framework, the company’s reserve coverage stands at 66%, while under GENIUS, it reaches 83%. Analysts note that while Tether previously maintained a higher compliance rate, the expanding market capitalization of USDT has led to a decline in the percentage of qualifying assets.
Related: Bill Hagerty’s GENIUS Act Seeks to Clarify Stablecoin Rules
While both bills impose strict regulations, they take different approaches: GENIUS allows a wider range of reserve assets and mandates federal oversight, whereas STABLE shifts stablecoin regulation to the state level but significantly limits acceptable reserve assets. Regardless of which bill is passed, Tether will need to restructure its reserves if it intends to continue operating with U.S. companies.
U.S. stablecoin regulations requiring more transparency and frequent reserve audits pose additional challenges to Tether,
analysts noted.
Additionally, the new laws would tighten reporting and compliance requirements. If access to USDT is restricted, Tether could lose a major portion of its U.S. customer base and face limitations on banking services and access to U.S. Treasury bonds. The bills are expected to be reviewed by the end of 2025, though the Trump administration may propose alternative regulatory measures.
Tether has already faced pressure from European regulations (MiCA), which mandate that at least 60% of stablecoin reserves be held in regulated banks. Due to non-compliance, several crypto exchanges have restricted access to USDT for European users, even in the absence of a direct ban.
This situation puts Tether in a difficult position, potentially forcing the company to restructure its reserves to maintain access to key markets.
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
