JPMorgan Says Tether May Sell Bitcoin Under Proposed US Rules

Tether may be required to sell some of the more unconventional assets supporting its $142 billion stablecoin if it wants to be regulated under proposed US rules, analysts at JPMorgan Chase & Co. said.

Tether operates the USDT stablecoin, a cryptocurrency that relies on a reserve mostly made up of short-dated US Treasuries to maintain a one-to-one value with the dollar. Stablecoins are used by crypto investors as a way to park their profits somewhere safe without the need to convert them back into real money.

US lawmakers introduced two bills to regulate stablecoins this month — one in the ...