Regulators have determined that Tether, the company behind a stablecoin of the same name, only has enough fiat reserves to support the dollar-pegged asset during the 26-month reporting period from 2016 to 2018. The agency also stated that Tether was breaking the law by holding some of its reserves in non-fiat financial instruments, as well as creating working capital and reserves.
In a simultaneous action, the watchdog for commodity futures transactions with Bitfinex has settled fees for the facilitation of “illegal goods retailing, foreign exchange trading in technical assets with Americans” on its platform, in addition to its activity “as a futures commissioner or FCM, without the” required registration. “
In a unanimous statement, CFTC Commissioner Dawn Stump backed the move, expressing concern that the deal could give stablecoin users a false sense of comfort as they could end up falsely arguing that the CFTC regulates stablecoins and oversees their issuers.
While the CFTC has adopted a broad definition of “commodity” for stablecoins in the present case, Stump has prevented the Commission from regulating the asset class and has “daily insight into the stablecoins business”. Issuers of stablecoins.
Tether issued a refutation and stressed that it always “has sufficient reserves”. The company stated its decision to settle it because it was ready to “solve this problem in order to move forward and focus on the future”.
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
Grand Cayman, Cayman Islands, May 3rd, 2024, ChainwireProtocol launches, growth trajectory, and industry-leading technology point…
Bitcoin and Ethereum options contracts worth $2.4bn expire on May 3, potentially causing market volatility.…
The integration helps users with a $10 USDC reward for purchasing at least $10 of…
11 people lost property worth NT$4.34m in a Singapore crypto poker robbery, including $3.58m SGD…
Hong Kong asset managers invested $112M in US-based spot Bitcoin ETFs. Yong Rong Asset Management…
Arthur Hayes offers insights into Bitcoin's recent performance, along with predictions for its future trajectory,…
This website uses cookies.