Analysts at the banking concern JPMorgan said that Tether's dominant position as the largest issuer of stablecoins has become more vulnerable due to its significant dependence on the US market.

This means that the USDT stablecoin becomes dependent on government control authorities amid the expected tightening of crypto regulation rules.

“Even though Tether is not based in the country, the US Treasury is able to exercise sufficient control over the use of USDT stablecoins through the Office of Foreign Assets Control (OFAC). For example, induce Tether to freeze assets in the crypto accounts of unwanted companies or members of the crypto community,” JPMorgan said in a statement.

In their conclusions, JPMorgan experts refer to the history of similar Tether actions in the past. For example, in 2023, the company repeatedly announced that it had frozen its stablecoins held in OFAC-sanctioned crypto wallets as a “preventative security measure.”

JPMorgan believes that after Tether adopts a new security policy to “actively prevent any potential abuse of USDT stablecoins,” the influence of the US Treasury Department and OFAC on the company’s global activities will only expand.

Earlier, Tether CEO Paolo Ardoino said that USDT's dominance in the stablecoin market has a negative impact on the financial activities of banks, in particular JPMorgan.

Source - Bits.Media

JPMorgan: The US Treasury is able to control the activities of Tether