Tether, issuer of the world’s hottest stablecoin USDT, has responded in multiple tweets saying it’ll work with policymakers, after the U.S. Senate Banking Committee earlier this week despatched letters to a number of stablecoin issuers — together with Tether — to inquire about their operational options.
- In the tweets, Tether stated it appreciates the curiosity from lawmakers on how stablecoins operate throughout the cryptocurrency ecosystem.
- “It is critical that we work collaboratively to build this industry. As pioneers of blockchain technology and leaders in transparency and innovation, Tether is dedicated [to] making sure our customers are properly protected and have the tools they need to succeed,” Tether stated.
- In Monday tweets, Ron Hammond, director of presidency relations on the Blockchain Association, stated the stablecoin issuers embody Coinbase, Gemini, Circle, Paxos, TrustToken, Centre, Binance U.S. and Tether. “This is likely a sign of an upcoming hearing,” he tweeted.
- In the letters, the committee stated stablecoins pose investor safety dangers and lift a number of market integrity issues, as documented within the latest report by the President’s Working Group on Financial Markets.
- The committee requested the stablecoin issuers to supply particular data together with fundamental purchases, minting course of, limitations, in addition to issuance and redemption information. The committee additionally requested them to “summarize any internal reviews or studies [the] company has conducted about how specific levels of redemptions would affect [the stablecoin], including its convertibility into U.S. dollars, or would affect the financial position of [the] company.”
- The stablecoin corporations are required to reply with solutions to those inquiries by Dec. 3.
- Just final month, Tether was fined US$41 million by the U.S. Commodity Futures Trading Commission (CFTC) over “untrue or misleading” claims that its USDT stablecoin was absolutely backed by corresponding fiat currencies. Tether later claimed the CFTC’s order “found no issues relating to Tether’s current operations” and that “these issues were fully resolved when the terms of service were updated in February 2019.”