Tether CEO Slams JPMorgan Analysis Indicating Stablecoin Giant May Sell Bitcoin

JPMorgan analysts projected that Tether may need to offload its Bitcoin amid efforts to establish stablecoin regulations in the United States, but the stablecoin giant clapped back, mocking the banking and investment giant for not having "enough Bitcoin."

Tether issues the world's largest stablecoin by market cap, USDT. Unlike some emerging rivals, USDT's compliance has been scrutinized over the years, especially with allegations around Tether's alleged "shady" business practices.

JPMorgan Analysts Point to Proposed Legislation

Analysts with the leading investment banking institution said the reason Tether may need to dump its massive BTC holdings and potentially other non-compliant assets it holds is due to two proposed bills centered on stablecoins.

Tether holds over 80,000 Bitcoins, making it one of the world's largest holders. Its holdings are worth over $8 billion based on current prices.

Under the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act of 2025 introduced in the House of Representatives, only around 66% of Tether's reserves are compliant, which means the rest may need to be disposed of, JPMorgan analysts argued.

As for the Guiding and Establishing National Innovation for U.S. Stablecoins for 2025, or the GENIUS Act of 2025 introduced in the Senate, stablecoin issuers may be required to hold reserves for stablecoin payments comprising U.S. dollars, Federal Reserve notes, and Treasury bills.

Under the GENIUS Act, only 83% of Tether's reserves meet the proposed bill's requirements on reserves, as per JPMorgan analysts led by Nikolaos Panigirtzoglou.

Tether CEO Shakes Off Analysis

As news regarding the analysis started spreading on social media Thursday, Tether CEO Paolo Ardoino took to X to scoff at the projections.

"JMP analysts are salty because they don't own Bitcoin," he wrote. He later followed up with another post, saying, "Tether analysts say that JPM does not have enough Bitcoin."

Many cryptocurrency holders stood with Ardoino, saying JPMorgan may be "salty" because the banking veteran supposedly can't compete with Tether in the stablecoin market.

For Tether, It's Not the First Time

Tether may be used to all the warnings and negative projections around its business, but it can't escape lingering questions about its stablecoin's compliance.

In December, the crypto firm faced scrutiny and USDT holders raised concerns about the possibility that USDT may be delisted in the European Union following the MiCA regulation's enforcement.

The stringent Markets in Crypto-Assets regulation went into full force at the end of 2024, raising serious questions about whether Tether was compliant at all.

Crypto exchanges based in the bloc have a couple of months to delist non-compliant digital assets, and many have pointed out USDT may be one of them.

It remains to be seen whether JPMorgan analysts' projection regarding Tether possibly offloading its Bitcoins will take place in the future. For now, USDT is safe, as it usually takes months and even years before proposed bills see any progress.