A report by JPMorgan confirmed that the US authorities are not going to take action against Tether firm and it will significantly impact the use of USDT stablecoin.
USDT is the top stablecoin asset by market cap & popularity. Tether is the backend firm behind this stablecoin. Tether is a subsidiary of the very old Bitcoin exchange Bitfinex. In the last 1.5 years, Tether took several steps to show the backend financial operations of the company with better transparency, so that the company can maintain a better trust level among the crypto traders who use USDT stablecoin.
On 15 Feb 2024, JPMorgan (JPM) analysts shed light on the extent of control American authorities can exert over Tether.
According to Nikolaos Panigirtzoglou forthcoming regulation on the stablecoin firms by the US authorities is going to put indirect pressure on Tether.
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However, Tether is not an American company & is headquartered in Road Town, Trinity Chambers, Virgin Islands (British) but the Office of Foreign Assets Control (OFAC), a unit of the U.S. The Treasury Department has the authority to take action & surely it will impact USDT’s offshore usage and regulatory compliance.
Some people speculated that OFAC may impose a ban or some kind of special restriction on the use of USDT, just like they imposed ban on the popular crypto-mixing platform Tornado Cash in 2022.
JPMorgan: US Regulators Can Influence Tether
JPMorgan analysts suggest US regulatory bodies, notably OFAC, have control over Tether's offshore usage.
Tether claims to follow Treasury OFAC sanctions…
— dennisowusubenyin (@dennisbenyin) February 17, 2024
It is worth it to note that if the OFAC body takes any negative action against Tether then surely it will shake the whole crypto market because the majority of the portion of the Defi crypto sector is dependent on USDC & USDT stablecoin, as people trade crypto assets in these two top stablecoin pairs.
However some people are not in the mood to give any attention to this report but some people are worried deeply, as already many top regulated crypto companies faced lawsuit action by the US financial regulators in the last 12 months.
Read also: Aussie federal police officer accused of stealing 81.5 Bitcoin (BTC) during raid
Tether (USDT) is going to face regulatory challenges in the US, a bad impact on offshore usage?
https://bitcoinik.com/tether-usdt-is-going-to-face-regulatory-challenges-in-the-us-a-bad-impact-on-offshore-usage/feed/
https://bitcoinik.com/tether-usdt-is-going-to-face-regulatory-challenges-in-the-us-a-bad-impact-on-offshore-usage/feed/
