Tether’s Chief Executive has hit back at JPMorgan, challenging the bank’s recent critique of the USDT stablecoin’s swift growth and market command. Paolo Ardoino pointed out that Tether’s dominance, now mirroring 10% of JPMorgan’s profits, is only a thorn for competitors, not the market it serves.
JPMorgan Flags Risks Amid Tether’s Surge
JPMorgan expressed concerns over Tether’s expansion, suggesting it might pose risks to the crypto ecosystem due to perceived regulatory uncertainty. This comes as Tether’s market cap saw a robust 35% hike in a year, with a notable $4 billion added just in January.
The banking giant highlighted the contrast with Circle’s USDC, which has been losing its foothold amidst regulatory pressures.
Despite JPMorgan’s alarm, Tether strives to surpass $100 billion in circulation. The company has enhanced transparency, especially after a $41 million settlement with the CFTC in 2021.
Nevertheless, JPMorgan’s report underscores a lag in regulatory compliance compared to USDC, setting the stage for a tighter regulatory lens on stablecoins in the near future.
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