Will Tether Have To Sell Bitcoin to Comply with US Regulations?
According to JPMorgan Chase report, tethers may require Sell Bitcoin and other products to match our recommendations Stablecoin rule. CEO Paolo Ardoino disputed this on social media, but did not address the core issue.
The U.S. is pushing for new Stablecoin regulations that include strict accounting and security reserves. Tether does not comply with similar regulations in Europe but loses the U.S. market.
Does Shitet have to sell Bitcoin?
Tether, The world’s leading stable issuerDespite regulatory challenges, it was a successful fiscal year in 2024. Last quarter, the company Reported record profitsit is opening up new market opportunities Relocated to El Salvador.
But it’s JPMorgan Chase Report Claims that the tether may have to sell a lot of bitcoins, its CEO fighting Return now:
“JPMorgan analysts are salty because they don’t have bitcoin. Tether analysts say JPMorgan doesn’t have enough bitcoin!” Tether CEO Paolo Ardoino explain via social media.
Analysts identified new US stability regulations Will force the tether to unload its Bitcoin reserves. Several stability bills are currently being proposed to the Senate, most of which advocate that issuers hold their asset reserves in the United States.
The most likely bill to pass is Tennessee Senator Bill Hagerty “Genius Law”. Act’s standard Prove that only 83% of Tether reserves are compliant, other proposed bill More aggressive.
Putting aside the problem of tethered Bitcoin holding, it is clear that the US Stablecoin regulations are coming soon. These Work hard to get support from both partiesand the Federal Reserve Chairman Jerome Powell also strongly supports them. If both Congressional factions and regulators need this, some version of it may pass.
Why would these proposed regulations force Tsai to sell its bitcoin? Essentially, they will completely change the way companies handle reserves. The company will need to store a large portion of its total cash reserves in Treasury bills or other insured institutions.
In short, the framework does not fully support the decentralization of Stablecoin issuers.
Last December, It’s largely kicked out of Europe Because similar requirements cannot be met under the new mica framework. Tie the rope Can handle losing the EUespecially because it is ready, but Crypto Exchanges Are Also Going to Give Up Company If needed.
In short, Ardoino’s social media outbreak has attracted attention, but it is actually an unrealistic reaction to the impending crisis. The tether may require a lot of bitcoins to be sold, and it may even be enough.
Analysts have tip The company ardently resists careful scrutiny of its reserves. New transparency requirements may reveal some ugly secrets.
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