JPMorgan Warns of Increased Risk for Crypto Market Due to Tether’s Lack of Regulatory Compliance and Transparency

JPMorgan's Warning on Tether and Crypto Market Risks

JPMorgan, the global investment bank, has raised concerns about the potential risks to the crypto market due to Tether's lack of regulatory compliance and transparency. In a recent report, JPMorgan analysts pointed out that other stablecoin issuers who are more compliant with existing regulations are likely to benefit from the upcoming regulatory crackdown on stablecoins and gain a larger share of the market.

Tether's Lack of Regulatory Compliance and Transparency

JPMorgan's report emphasizes the increasing risk posed by Tether's USDT stablecoin to the overall crypto market. As the largest stablecoin in the world, with a market capitalization exceeding $96 billion, Tether's lack of regulatory compliance and transparency is becoming a cause for concern. In comparison to Circle, the issuer of USDC, Tether falls short when it comes to regulatory compliance for their stablecoin.

The analysts at JPMorgan highlight that stablecoin issuers who have been more aligned with existing regulations are likely to benefit from the regulatory crackdown on stablecoins and gain a larger market share.

Response from Tether CEO, Paolo Ardoino

In response to JPMorgan's criticism and concerns, Tether CEO Paolo Ardoino stated that Tether's dominance in the market may be viewed as a negative by competitors, including those in the banking industry. However, he emphasized that Tether has always worked closely with global regulators to educate them about the technology and provide guidance on its use.

Ardoino further added that Tether has made efforts to improve transparency by issuing quarterly attestations of its operations and finances. It is worth mentioning that Tether faced a $41 million fine from the U.S. Commodity Futures Trading Commission (CFTC) in 2021 for misrepresenting its reserves. Since then, the company has been working to enhance transparency.

Tether recently reported a profit of $6.2 billion for the year 2023.


JPMorgan's warning about the increased risk in the crypto market due to Tether's lack of regulatory compliance and transparency highlights the need for stablecoin issuers to adhere to existing regulations. As regulatory scrutiny on stablecoins intensifies, those issuers who have already taken steps to comply with regulations are likely to benefit and gain a larger market share.

What are your thoughts on JPMorgan's warning regarding Tether, USDT, and the risks to the overall crypto market? Let us know in the comments section below.

Frequently Asked Questions

What precious metal should I invest in?

This question depends on how risky you are willing to take, and what return you want. Although gold has been considered a safe investment, it is not always the most lucrative. For example, if your goal is to make quick money, gold may not suit you. You should invest in silver if you have the patience and time.

If you don't care about getting rich quickly, gold is probably the way to go. If you want to invest in long-term, steady returns, silver is a better choice.

What precious metals can you invest in for retirement?

These precious metals are among the most attractive investments. Both are easy to sell and can be bought easily. Consider adding them to the list if you're looking to diversify and expand your portfolio.

Gold: Gold is one of man's oldest forms of currency. It's stable and safe. It is a good way for wealth preservation during uncertain times.

Silver: The popularity of silver has always been a concern for investors. It's a great option for those who want stability. Silver, unlike gold, tends not to go down but up.

Platinium is another precious metal that is becoming increasingly popular. It's durable and resists corrosion, just like gold and silver. It's also more expensive than the other two.

Rhodium: Rhodium is used in catalytic converters. It's also used in jewelry making. It is also very affordable in comparison to other types.

Palladium: Palladium is similar to platinum, but it's less rare. It's also more affordable. Investors looking to add precious and rare metals to their portfolios love it for these reasons.

Should You Buy Gold?

In the past, gold was considered a haven for investors during economic turmoil. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.

While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.

Some experts think that this could change in the near future. According to them, gold prices could soar if there is another financial crisis.

They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.

These are some important things to remember if your goal is to invest in gold.

  • Before you start saving money for retirement, think about whether you really need it. You can save money for retirement even if you don't invest in gold. The added protection that gold provides when you retire is a good option.
  • Second, ensure you fully understand the risks involved in buying gold. Each account offers different levels of security and flexibility.
  • Keep in mind that gold may not be as secure as a bank deposit. You may lose your gold coins and never be able to recover them.

Don't buy gold unless you have done your research. Protect your gold if you already have it.

How much of your IRA should include precious metals?

When investing in precious metals, the most important thing to know is that they aren't just for wealthy people. It doesn't matter how rich you are to invest in precious metals. There are many ways that you can make money with gold and silver investments, even if you don't have much money.

You might also be interested in buying physical coins, such bullion rounds or bars. Stocks in companies that produce precious materials could be purchased. You might also want to use an IRA rollover program offered through your retirement plan provider.

No matter what your preference, precious metals will still be of benefit to you. Although they aren’t stocks, they offer the possibility for long-term gains.

Their prices are more volatile than traditional investments. If you decide to make a sale of your investment in the future, you will likely realize more profit than with traditional investments.


  • Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (
  • (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (
  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (
  • This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (

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Investing with gold or stocks

These days, it might seem quite risky to invest your money in gold. This is because many people believe that gold investment is no longer profitable. This belief arises because most people believe that the global economy is driving down gold prices. They believe they would lose their money if they invested gold. There are many benefits to investing in gold. Here are some examples.

One of the oldest forms known of currency is gold. There are thousands of records that show gold was used over the years. It is a valuable store of value that has been used by many people throughout the world. It's still used by countries like South Africa as a method of payment.

When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. You could contact a local jeweler to find out what their current market rate is.

It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. So, although gold prices have declined in recent years, the cost of producing it has not changed.

When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. It is sensible to avoid buying gold if you are only looking to cover the wedding rings. It is worth considering if you intend to use it for long-term investment. If you sell your gold for more than you paid, you can make a profit.

We hope this article helped you to gain a better appreciation of gold as a tool for investment. It is important to research all options before you make any decision. Only then will you be able to make an informed decision.

By: Kevin Helms
Title: JPMorgan Warns of Increased Risk for Crypto Market Due to Tether’s Lack of Regulatory Compliance and Transparency
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Published Date: Tue, 06 Feb 2024 02:30:11 +0000

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