U.S. Regulators Cast a Shadow on Tether's Offshore Reach Tether, the titan of stablecoins, finds itself navigating choppy regulatory waters as authorities worldwide set their sights on greater
transparency and
compliance.
Despite its non-U.S. roots, Tether's reliance on the American market leaves it exposed to the long arm of U.S. regulators,
who can flex their muscles through the Office of Foreign Assets Control (OFAC), warns JPMorgan.
In a fresh report, JPMorgan analysts underline Uncle Sam's influence over Tether, hinting that forthcoming regulations may apply "indirect pressure" on the stablecoin giant, favoring those with more robust
KYC and
AML credentials.
While Tether has taken steps towards openness, JPMorgan remains skeptical, suggesting
that recent disclosures fall short of allaying concerns. The ripples extend to DeFi platforms relying on Tether's liquidity.
Brace for global coordination as the Financial Stability Board (FSB) rallies the G20 nations around tighter rules for stablecoins –
a wave that could further crimp unregulated contenders like Tether.
