Morgan Stanley Research Report: U.S. regulatory authorities do indeed have a certain degree of control over Tether

According to CoinDesk, JPMorgan (JPM) stated in a research report that USDT, as the highest market value stablecoin, faces risks due to its dependence on the U.S. market and pending regulation. The report said that although USDT is not established in the United States, regulators can exert some control over the overseas use of stablecoins through the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department.

 

JPMorgan pointed out that its association with Tornado Cash is one example, noting that OFAC blacklisted a crypto mixer operating on the Ethereum network in August 2022, accusing it of facilitating money laundering activities.