Tether CEO Paolo Ardoino Dismisses JP Morgan’s Bitcoin Sell-Off Prediction
2025-02-13
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JP Morgan has stirred controversy with its latest claims that Tether (USDT), the largest stablecoin issuer, may need to sell off some of its Bitcoin holdings to comply with incoming U.S. stablecoin regulations. 
However, Tether CEO Paolo Ardoino quickly rebuffed these claims, taking to social media to criticize the banking giant.
In a recent tweet, Ardoino JP Morgan analysts, stating:
JPM analysts are salty because they don't own Bitcoin.— Paolo Ardoino 🤖🍐 (@paoloardoino) 
His remarks came in response to JP Morgan’s report suggesting that regulatory shifts could force Tether to liquidate some of its Bitcoin reserves, potentially triggering a massive downturn in BTC prices.
JP Morgan’s report predicted that proposed U.S. stablecoin regulations could force Tether to sell its non-compliant assets, including Bitcoin, precious metals, corporate paper, and secured loans. 
Given that Tether currently holds approximately 83,758 BTC—valued at over $8 billion—any major sell-off could significantly impact the crypto market.Tether Vs JP Morgan: A Fact or Speculation?
The U.S. is currently considering two stablecoin regulation 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. 
Both bills aim to impose stricter reserve management rules and ensure that stablecoins maintain 1:1 backing with liquid assets such as U.S. Treasuries.
According to JP Morgan analysts led by Nikolaos Panigirtzoglou, only 66% of Tether’s reserves meet compliance standards under the STABLE Act, whereas under the GENIUS Act, the figure rises to 83%.
JP Morgan’s report states that if either bill is passed, Tether would be required to shift a significant portion of its holdings into more liquid assets.
The regulatory pressure on Tether is not limited to the U.S. The stablecoin issuer has already encountered hurdles in Europe, where the Markets in Crypto-Assets (MiCA) regulation mandates that large issuers hold 60% of reserves in EU-based banks. 
This led to Tether’s delisting from several European exchanges, although its limited market share in the region softened the blow. However, the U.S. market presents a greater challenge due to Tether’s significant dominance.Will Tether Sell Bitcoin?
One key concern JP Morgan raised is whether Tether will be forced to liquidate some of its Bitcoin holdings. 
Tether first announced in 2023 that it would allocate up to 15% of its quarterly profits to purchasing Bitcoin, a move to diversify its reserves.
Since then, the company has accumulated a substantial amount of BTC, making it one of the largest institutional holders of the cryptocurrency.
Despite JP Morgan’s warning, Tether’s financial position remains strong. In its Q4 2024 attestation report, Tether revealed that its reserve buffer had surpassed $7 billion and that the company had recorded $13 billion in profits for the year. 
However, Tether supporters argue that the stablecoin issuer has weathered multiple regulatory storms and continues to operate without issue.
Conversely, while JP Morgan has criticized stablecoins like Tether, it has also been actively investing in blockchain technology and even developing its own digital assets, such as JPM Coin.
Ardoino’s tweet referencing JP Morgan’s supposed bias against Bitcoin echoes a sentiment shared by many in the crypto community that traditional banks see crypto as both a threat and an opportunity. 
Adding to the controversies, another circulating claim suggests that U.S. stablecoin regulations will specifically exclude Tether from compliance requirements. 
Remember, JP Morgan “foresees DECREASED USE OF TETHER WITH UPCOMING STABLECOIN REGULATIONS.”🙇‍♂️And it has already been confirmed that U.S Stablecoin regulations will SPECIFICALLY EXCLUDE TETHER.✅Deep.👇 — SMQKE (@SMQKEDQG) 
If true, this would reinforce JP Morgan’s analysis and make it more factual.