{"id":10378,"date":"2024-02-02T13:19:37","date_gmt":"2024-02-02T11:19:37","guid":{"rendered":"https:\/\/forklog.com\/en\/jpmorgan-highlights-risks-to-industry-from-tethers-dominance\/"},"modified":"2024-02-02T13:19:37","modified_gmt":"2024-02-02T11:19:37","slug":"jpmorgan-highlights-risks-to-industry-from-tethers-dominance","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/jpmorgan-highlights-risks-to-industry-from-tethers-dominance\/","title":{"rendered":"JPMorgan Highlights Risks to Industry from Tether’s Dominance"},"content":{"rendered":"

The increasing dominance of Tether poses a negative factor for the stablecoin market and the broader crypto ecosystem, according to analysts at JPMorgan, reports The Block<\/a>.<\/p>\n

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Data: JPMorgan.<\/figcaption><\/figure>\n
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“Tether is at risk due to a lack of regulatory compliance and transparency,”<\/em> the report states.<\/p>\n<\/blockquote>\n

Experts noted the US Congress’s consideration of the Stablecoin Transparency Act and the establishment of regulatory frameworks for stablecoins in other jurisdictions. In particular, partial implementation of MiCA<\/span> is expected in the EU in June.<\/p>\n

According to analysts, stablecoin issuers that strictly adhere to existing rules will benefit from upcoming regulatory oversight and potentially increase their market share.<\/p>\n

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“I am pleased to see JPMorgan acknowledge the importance of Tether and the stablecoin technology created by the company. However, I find it somewhat hypocritical to hear concerns about concentration from JPMorgan, the largest bank in the world,”<\/em> commented Paolo Ardoino, CEO of the USDT issuer.<\/p>\n<\/blockquote>\n

According to him, Tether’s success is due to its financial reliability, significant reserves, and commitment to developing economies where entire communities use USDT as a “lifeline” to protect their families from high inflation and currency devaluation.<\/p>\n

JPMorgan also noted Circle’s filing for an IPO<\/a>. Experts see this initiative as an intention to pursue international expansion and prepare for upcoming sector regulation.<\/p>\n

In the fourth quarter, Tether achieved a record net profit of $2.9 billion.<\/p>\n

Since December 1, 2023, the issuer has been freezing wallets linked to the SDN<\/a> list of the US Treasury’s Office of Foreign Assets Control. The company also highlighted its assistance to agencies like the Department of Justice, Secret Service, and FBI.<\/p>\n

Previously, Tether expressed disappointment<\/a> with the UN’s assessment of USDT’s use in illegal activities<\/a> and the disregard for the asset’s role in developing economies.<\/p>\n","protected":false},"excerpt":{"rendered":"

The increasing dominance of Tether poses a negative factor for the stablecoin market and the broader crypto ecosystem, according to analysts at JPMorgan, reports The Block. Data: JPMorgan. “Tether is at risk due to a lack of regulatory compliance and transparency,” the report states. Experts noted the US Congress’s consideration of the Stablecoin Transparency Act […]<\/p>\n","protected":false},"author":1,"featured_media":10377,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1220,229,1138,807,1245],"class_list":["post-10378","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-circle","tag-jpmorgan","tag-opinions","tag-stablecoins","tag-tether-usdt"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/10378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=10378"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/10378\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/10377"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=10378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=10378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=10378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}