Paolo Ardoino, CEO of Tether, has criticized JPMorgan's analysts for their suggestions amidst potential new stablecoin requirements under consideration in the U.S.
Conflict Between Tether and JPMorgan
Paolo Ardoino made remarks about JPMorgan analysts, stating they are "salty" because they do not hold the largest cryptocurrency. This comment follows JPMorgan's suggestion that Tether may need to liquidate various assets, including substantial Bitcoin holdings, to comply with new U.S. regulations.
Current Reserves and STABLE Bill Discussion
Under the STABLE bill currently being discussed, approximately 34% of Tether's reserves could be noncompliant. As of now, Tether's Bitcoin holdings amount to around $8 billion. However, some users have pointed out that Tether is overcollateralized, and its Bitcoin holdings do not actually back the flagship stablecoin.
Influence of Key Figures and Future Prospects
Tether, which has faced significant regulatory scrutiny in the U.S., is backed by Howard Lutnick, CEO of the financial services firm Cantor Fitzgerald. Lutnick was recently nominated to be the next U.S. Commerce Secretary, and his ties to Tether were mentioned during a recent confirmation hearing. Lutnick stated he would not engage in any improper actions regarding Tether.
Having a significant ally like Howard Lutnick makes it less likely for Tether to be forced to liquidate its Bitcoin holdings. However, the STABLE bill discussion continues to pose relevant questions for the company's future.
