JPMorgan: Tether's Increasing Dominance is Negative News for Cryptocurrencies
JPMorgan has expressed concerns about the growing dominance of USDT (Tether) in the stablecoin market, despite the recent encouraging growth in the total capitalization of stablecoins.
In a report released on Thursday, analysts at JPMorgan, led by Nikolaos Panigirtzoglou, stated, “Given its lack of regulatory compliance and transparency, Tether faces the greatest risk. Therefore, we believe that the increase in Tether's concentration over the past year is negative for the stablecoin universe and the broader crypto ecosystem.”
The analysts noted that stablecoin issuers face regulatory risks globally. In the United States, the “Clarity for Payment Stablecoins Act” is awaiting approval from Congress. Additionally, in Europe, the Markets in Crypto Assets (MiCA) regulations are expected to be partially implemented in June of this year. According to the analysts, stablecoin issuers who strictly adhere to existing regulations are likely to benefit from the upcoming regulatory scrutiny and may gain market share.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Slowmist Releases October Web3 Security Incident Report
TEAMZ Web3・AI Summit 2025: Bringing Global Leaders to Tokyo
Japan’s Crypto Industry to Launch “Self-Regulation” of Stablecoins
Russia Establishes Legal Framework and Standards for Crypto Mining
0.00