- JPMorgan said Tether's growing dominance is a cause for concern.
- Analysts believe Tether is at risk due to a “lack of regulatory compliance.”
- At the time of writing, USDT’s capitalization crossed the $96 billion mark.
JPMorgan said that Tether's growing dominance is a negative factor both for other stablecoin issuers and for the cryptocurrency market as a whole. This is reported by The Block with reference to the bank's report.
“Tether is primarily at risk due to a lack of regulatory compliance and transparency,” the experts said in a statement.
Tether CEO Paolo Ardoino responded to JPMorgan's statement. He said he thought it was a little disingenuous that “talk about concentration is coming from JPMorgan, the largest bank in the world.”
“Tether’s success is driven by its financial strength, strong reserves, and commitment to emerging markets and countries where entire communities use USDT to protect their families from high inflation and currency devaluation,” Ardoino added.
Analysts also emphasized that stablecoin issuers face regulatory risks around the world. According to them, those companies that carefully adhere to existing regulations will be able to potentially gain market share.
The bank also stated that the company issuing the USDC stablecoin, Circle, is actively preparing for future regulation of “stable coins.”
Let us remind you that Tether recently reported a net profit of $2.85 billion in the fourth quarter of 2023.