JPMorgan analysts have suggested that although Tether is not a US entity, American regulators can still exert control over the stablecoin issuer through the Office of Foreign Assets Control (OFAC). In a report, the analysts pointed to Tether's association with Tornado Cash, a privacy-enhancing platform, as evidence that US regulators can have an impact on Tether's operations. OFAC sanctioned Tornado Cash in 2022, alleging it was being used for money laundering. Tether initially declared it would not bar Tornado Cash addresses, but later froze its stablecoins held in crypto wallets sanctioned by OFAC. Tether CEO Paolo Ardoino dismissed JPMorgan's concerns, suggesting the bank was jealous of Tether's market position. In a separate report, JPMorgan analysts said forthcoming stablecoin regulations would likely decrease Tether's usage, as it would face greater competition from stablecoins with more transparency and regulatory compliance. Read more AI-generated news on: https://app.chaingpt.org/news