Tether May Sell $8 Billion in Bitcoin Holdings to Address US Compliance Risks
The post Tether May Sell $8 Billion in Bitcoin Holdings to Address US Compliance Risks appeared on BitcoinEthereumNews.com.
Tether’s substantial Bitcoin holdings and compliance with emerging U.S. stablecoin regulations have drawn the attention of financial analysts. Recent disclosures indicate that the stablecoin issuer holds approximately 83,759 BTC, valued at over $8.02 billion. This amount represents 0.4% of Bitcoin’s total supply. Meanwhile, latest analysis by JPMorgan has noted that maintaining such assets may pose regulatory challenges as new stablecoin policies take shape in the United States and Europe. Tether’s Bitcoin Reserves and Compliance Risks Tether’s Bitcoin reserves increased on December 30, when a wallet associated with the company acquired 8,404 BTC worth $776.6 million. JPMorgan analysts have assessed Tether’s reserve compliance with U.S. stablecoin regulations. They estimate that only 66% to 83% of its reserves meet proposed standards, marking a decline in compliance levels since mid-2024. The rise in stablecoin supply has contributed to this shift. Analysts suggest that regulatory adjustments could require the company to divest certain non-compliant assets, including Bitcoin, corporate notes, secured loans, and precious metals. Tether CEO Paolo Ardoino commented on social media platform X, suggesting that JPMorgan analysts’ dissatisfaction stems from not holding Bitcoin. JPM analysts are salty because they don’t own Bitcoin. — Paolo Ardoino 🤖🍐 (@paoloardoino) February 13, 2025 Proposed US Stablecoin Regulations The evolving U.S. stablecoin regulatory landscape presents varying requirements under different legislative proposals. The Senate’s GENIUS Act mandates federal oversight for stablecoins with a market capitalization exceeding $10 billion. It allows state-level regulation only if it aligns with federal guidelines. Meanwhile, the House’s STABLE Act offers more flexibility, permitting state regulation without additional conditions. Differences in reserve requirements also distinguish the two bills. The STABLE Act enforces stricter standards, limiting reserves to insured deposits, U.S. Treasury bills, short-term Treasury repos, and central bank reserves. The Senate’s version provides more leeway by including money market funds and reverse repos. Additionally,…
Filed under: News - @ February 13, 2025 8:25 pm