- Tether’s growing dominance concerns JPMorgan, risks to the crypto ecosystem.
- Regulatory challenges for stablecoins, Tether most vulnerable.
- USDC is poised to gain from the regulatory landscape, expanding strategically.
JPMorgan expressed concerns in a recent research report that the growing dominance of Tether (USDT) could have adverse effects on the overall cryptocurrency landscape. The bank highlights the rising prominence of Tether as a detrimental development for both the stablecoin sector and the wider crypto community.
According to the report, stablecoins are currently navigating through regulatory challenges in various regions, with Tether being particularly vulnerable due to its regulatory non-compliance and lack of openness.
Nonetheless, JPMorgan noted that this situation presents a chance for alternative stablecoins. Those issuers who have been proactive in complying with regulations may stand to gain from potential regulatory actions and capture a larger portion of the market.
USD Coin (USDC), which is in the process of going public in the United States, could stand to gain from the evolving regulatory landscape for stablecoins.
According to a JPMorgan report, USDC seems to be strategically expanding its presence across various jurisdictions and is actively preparing for forthcoming stablecoin regulations. The report also highlights Tether’s significant growth in terms of market capitalization and market share, noting its widespread acceptance on both centralized cryptocurrency exchanges and within the decentralized finance (DeFi) ecosystem.
Recently, Tether reported an unprecedented profit of $2.85 billion for the last quarter, with its flagship token nearing a market cap of $100 billion. Additionally, Tether has capitalized on the challenges faced by its competitors, such as USDC and Binance’s BUSD, further consolidating its position in the market.
