Tether signaled via Twitter that it would cooperate with authorities to address concerns about the stablecoins. Tether recently received a letter from US Senator Sherrod Brown, discussing the stablecoins and investor protection.
Tether has announced that it will work with global legislators to address any issues associated with stablecoins. The declaration was made via Twitter on November 25, and the company said it would work collaboratively to build this industry.
On the Twitter thread, Tether also linked a Press release from Senator Sherrod Brown, who chairs the US Senate Committee on Banking, Housing and Urban Affairs.
Brown sent letters to issuers and exchanges from stablecoins asking how they protected investors. Recipients of the letter include Coinbase, Gemini, Paxos, TrustToken, Binance.US, and Tether.
Tether’s tweets were a response to that press release and, like many other issuers of stablecoins, appears to be working on compliance and is eager to appease regulators. Tether itself has been at the center of a lot of controversy in the market, largely related to supporting USDT supply.
Circle, which is behind the stablecoins USD Coin (USDC) announced earlier this year that it would be working to be more transparent to meet accountability standards. The SEC issued a subpoena in early October 2021 and Circle has said it would cooperate fully with the regulator.
The stablecoins have become one of the main concerns of legislators, who they fear they could threaten national currencies and present cross-border economic problems. Several countries are preparing for the regulation of stablecoins, or at least an examination of the special asset.
Stablecoin regulation is inevitable
The avalanche of news related to stablecoins in recent months it is indicative of how interested governments are in curbing the special asset.
This is happening globally: the G20 authorities called for a regulation of the stablecoins before it is approved for use. They also said that central bank digital currencies (CBDC) should be implemented before the global use of the stablecoins.
Specific governments are also working on regulating the stablecoins, notably the US government Late last month, reports surfaced that the SEC would crack down on the US market. stablecoins, although few updates have been offered since.
SEC Chairman Gary Gensler he referred to the stablecoins as “poker chips” and sought greater oversight of the niche.
The Consumer Financial Protection Bureau (CFPB) has also launched extensive technology research, including stablecoins.
Director Rohit Chopra said that if a large tech company issued stablecoins, could see widespread public adoption if they take advantage of their large user bases. Perhaps he was hinting at the stablecoins Diem, which has been of great concern to many regulators.
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Tether to cooperate with authorities to address stablecoin concerns – BeInCrypto