JPMorgan: Stablecoin regulation could pose a major challenge to Tether's market dominance

JPMorgan Chase pointed out in a research report on Wednesday that increasingly stringent stablecoin regulation could pose a major challenge to Tether's market dominance. According to the European Crypto-Asset Markets Act (MiCA), 60% of stablecoin reserves must be kept in European banks, which may force Tether to adjust its reserve management strategy. Tether has previously been subject to regulatory scrutiny for its lack of transparency in the composition of its reserves, and the new regulations will further increase its pressure to disclose detailed information and conduct audits. JPMorgan Chase believes that if these new regulations cannot be complied with, Tether's dominance in the stablecoin market will be threatened.