JPMorgan warns Tether may need to restructure reserves for U.S. stablecoin rules

JPMorgan analysts estimate that only 66% to 83% of the world’s largest stablecoin issuer, Tether, reserves meet proposed U.S. stablecoin regulations under the House’s STABLE Act and Senate’s GENIUS Act. According to The Block, if the rules pass, Tether may need to offload non-compliant assets—such as Bitcoin, precious metals, corporate paper and secured loans—in favor of U.S. Treasuries and more liquid holdings. The analysts note that the compliance ratio has declined since mid-2024 amid a surge in stablecoin supply.