JPMorgan (JPM) published a report on Wednesday warning the stablecoin giant Tether that it could be forced to liquidate some of its bitcoin (BTC) holdings in order to comply with upcoming U.S. stablecoin legislation. On Thursday, Tether CEO Paolo Ardoino fired back on X, mocking the bank’s analysts: “JPM analysts are salty because they don’t own bitcoin.”
The STABLE and GENIUS Acts: Compliance Thresholds
The report focuses on two proposed bills: the House’s “Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act” and the Senate’s “Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.” JPM analysts estimate that under the STABLE Act, only 66% of Tether’s $144 billion reserve assets would be compliant, while under the GENIUS Act, the figure rises to 83%. The analysts believe Tether would need to replace some of its bitcoin with traditional assets such as U.S. Treasury bills. Tether’s USDT currently commands roughly 62% of the $230 billion stablecoin market. The company reported a massive $13 billion profit for its 2024 fiscal year and holds approximately 84,000 BTC in one of its main addresses.
Ardoino Strikes Back: Ignored $20B Equity, Compliance ‘Straightforward’
Ardoino took to X to dismiss the analysis, referencing JPMorgan CEO Jamie Dimon’s 2017 characterization of bitcoin as “a fraud.” “Tether analysts say that JPM does not have enough bitcoin,” Ardoino added, echoing Dimon’s earlier stance. He pointed out that JPMorgan’s report did not factor in Tether’s $20 billion in group equity, which generates over $1.2 billion in quarterly profits. Regarding compliance with the STABLE and GENIUS Acts, Ardoino reportedly said it “will be straightforward,” implying Tether is already well-positioned to meet any regulatory requirements.
Market Reaction and Regulatory Outlook
As of press time, Tether has not disclosed specific adjustment plans, but Ardoino’s defiant response helped stabilize market sentiment. USDT remained pegged, while bitcoin experienced minor intraday volatility. Analysts suggest that the final versions of both bills may be more accommodating to the crypto industry, but any forced reserve reshuffling by Tether could temporarily pressure bitcoin prices. Notably, JPMorgan’s own stance on bitcoin has softened since 2017 — the bank now participates in blockchain initiatives — raising questions about whether the report is purely technical analysis or another chapter in the ongoing Wall Street–crypto tension.