JP Morgan Research Report: U.S. regulators do have some control over Tether

As reported by CoinDesk, JPMorgan (JPM) stated in a research report that USDT, the highest market value stablecoin, faces risks due to its dependence on the US market and pending regulations.

The report states that although USDT issuer Tether is not based in the United States, regulatory agencies can exert some control over the stablecoin issuer's overseas use through the US Treasury Department's Office of Foreign Assets Control (OFAC).

JPMorgan pointed out that the association with Tornado Cash is one example, citing OFAC's blacklisting of the cryptocurrency mixer that will be running on the Ethereum network in August 2022, accusing it of facilitating money laundering activities.