Bitfinex CTO: Tether Is Registered and Regulated Beneath FinCEN- USDT Not Subsequent Goal of the US SEC
Bitfinex CTO Paolo Ardoino has resisted rumors that the company’s Tether Stablecoin could be the SEC’s next target. The Bitfinex executive insists that the Tether stablecoin, whose market cap has now surpassed $ 20 billion, is a properly registered and regulated crypto.
The alleged misinformation campaign
The CTO responded to rumors on social media that the USDT stablecoin could find itself in a similar situation as Ripple’s XRP token. Immediately after the SEC sued Ripple for allegedly violating the Securities Act, the value of the XRP token fell. In addition, many crypto exchanges, aware of the implications of the lawsuit, delisted the token.
However, in his response to Ki Young Ju, the CEO of Cryptoquant, Ardoino denies the rumors, accusing the former of spreading misinformation. The CTO goes on to claim that the company’s stablecoin is compliant with regulations just like those of its competitors. In a tweet, the CTO says:
Reminder: Tether is registered and regulated under FinCEN as all centralized competitors. Strict KYC / AML is applied to all Tether direct users, as are the other major issuers. Only FUD is less regulated. Are you wondering who will benefit from the spread of such misinformation?
In his tweet, Ju suggested that Circle’s USDC token is “the most legally regulated stable coin” and that it “will eventually replace the USDT” if the SEC takes action against Bitfinex.
SEC does not target USDT
While bitcoins have long voiced concerns about the USDT’s audit or lack of it, some like economist Alex Kruger insist the SEC won’t target the stablecoin anytime soon. In response to Ju’s speculation that Tether would be next on US regulators’ list, Kruger argued that the “SEC would not target Tether” because the stablecoin’s issues “are unrelated to and under the unregistered securities Would fall under the jurisdiction of another authority. ”
Similarly, attorney Jake Chervinsky believes the SEC is unlikely to be the agency handling the USDT, given that stablecoins are “almost the hardest part of getting classified as security.” Instead, Chervinsky believes NYAG, which Tether is already pursuing in an investigation into the Martin Act, is best placed to act.
However, it remains to be seen whether Ardoino’s recent remarks will end the lingering rumors about the USDT stablecoin.
Do you agree that the USDT stablecoin is already regulated and the SEC cannot act against it? Let us know what you think in the comments section below.
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