Tether, the issuer of USDT, may be subject to pressure from the US government, although it is not based in the US.
According to the analysis of banking giant JPMorgan, the USA can control Tether through the Office of Foreign Assets Control (OFAC), which is affiliated with the Treasury Ministry.
JPMorgan analysts, “Regulators in the US, through OFAC, may take some control of Tether’s activities in foreign countries. An example of this is Tether’s association with Tornado Cash, which is Ethereum-based and increases privacy.” said.
OFAC added Tornado Cash to its sanctions list in 2022 on the grounds that it was used to launder proceeds of crime. Tether announced that it would not block Tornado Cash addresses on the grounds that there was no request from the USA at that time.
As a matter of fact, Tether used cryptocurrency wallets that were sanctioned by OFAC last December. Freezing for “precautionary” purposes took the decision.
JPMorgan analysts have noted that legal regulations for stablecoins in the US and across Europe also include the use of USDT. to negatively affect waiting. Analysts compared to Tether operating more transparently and complying with the law He thinks that issuers will come to the fore.
Tether CEO Paolo Ardoino commented on JPMorgan’s analysis. “jealousy” He evaluated it as and said:
“JPMorgan’s concerns are about a transformation in financial and payment services that they have ignored for a decade and is now accelerating.” stems from jealousy “It looks like.”