JPMorgan Says Stricter KYC/AML Rules Could Cripple USDT Dominance

• JPMorgan’s report raises concerns over USDT’s reliance on the American market.
• It argued that U.S. regulators, through OFAC, could influence Tether’s offshore operations.
• It stated stricter KYC/AML standards and global regulatory coordination could diminish Tether’s appeal.

In a recent research report, American financial giant JPMorgan warned about Tether (USDT), the leading stablecoin in the crypto market. The report highlighted vulnerabilities stemming from Tether’s reliance on the American market and impending regulatory scrutiny.

While Tether operates outside the United States, the report underscores that U.S. regulators possess avenues to influence the stablecoin’s offshore activities, notably through the Office of Foreign Assets Control (OFAC). This assertion gains traction from OFAC’s previous blacklisting of Tornado Cash, a crypto-mixer affiliated with Tether accused of enabling money laundering.

JPMorgan’s analysts emphasized the potential for indirect regulatory actions and international cooperation to impede Tether’s usage. They argue that forthcoming stablecoin regulations, like…

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