Commenting on a JPMorgan report analyzing Tether's reserves and potential regulatory challenges, the stablecoin issuer's CEO Paolo Ardoino told The Block that the bank's analysts are "salty" and discount his company's $20 billion group equity in their assessment.
"Even in the most extreme scenario, JPMorgan discounts the fact that Tether's group equity is over $20 billion in other very liquid assets and is generating more than $1.2 billion in profits per quarter through U.S. Treasuries," Ardoino said. He added that adapting to new regulations "will be straightforward" for the company.
As The Block reported earlier today, JPMorgan analysts estimated that only 66%–83% of Tether's reserves currently comply with proposed U.S. stablecoin regulations. The analysts suggested that Tether may need to sell some of its reserves, including bitcoin, corporate debt and secured loans, in favor of U.S. Treasuries and other highly liquid assets to meet proposed U.S. stablecoin regulations.
Ardoino declined to directly comment on whether Tether may need to sell bitcoin to comply with proposed regulations. Instead, he pointed to his post on X, stating, "Tether analysts say that JPM does not have enough Bitcoin."
Tether currently holds about 83,758 bitcoin, worth over $8 billion at current prices, as part of its reserves. The company first announced in 2023 that it planned to allocate up to 15% of its quarterly profits to purchasing bitcoin.
Ardoino dismissed JPMorgan's concerns, also taking aim at the bank's analysts. "Those analysts at JPMorgan seem a bit jealous that they didn't buy Bitcoin cheap and make them salty," he told The Block. "But clearly they don't understand either Bitcoin nor Tether. And they won't have a cheap event to buy Bitcoin. No one feels sorry for them."
The U.S. has introduced two stablecoin bills — the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act in the House and the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act in the Senate — seeking to regulate stablecoin issuers with licensing requirements, risk management rules, and 1:1 reserve backing.
The proposed bills are expected to be enacted later this year and could pose a "more significant" challenge to Tether, according to the JPMorgan analysts.
Ardoino said Tether is "closely monitoring the evolution of the different U.S. stablecoin bills and also actively engaging with local regulators," noting that "consultation from the industry needs to happen and it's still unclear which bill will move forward."
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