The CTO at Bitfinex Paolo Ardoino has pushed back against rumours that the company’s Tether stablecoin may be the next target of the U.S. Securities and Exchange Commission (SEC). The Bitfinex executive insists that the Tether stablecoin, whose market capitalization has now surpassed $20 billion, is a properly registered and regulated crypto.
The Alleged Misinformation Campaign
The CTO said while responding to rumours circulating on social media that the USDT stablecoin might fall into a predicament similar to that of Ripple’s XRP token. Immediately after the SEC filed to sue Ripple for allegedly violating the Securities Act, the XRP token’s value tumbled. Additionally, many crypto exchanges that are wary of the implications of the lawsuit have delisted the token.
However, in his reply to Ki Young Ju, the CEO at Cryptoquant, Ardoino dismisses the rumours and accuses the former of spreading misinformation. The CTO goes on to claim that the company’s stablecoin adheres to regulations just like those of its rivals. In a tweet, the CTO says:
Reminder: Tether is registered and regulated under FinCEN as all the centralised competitors. Strict KYC/AML is applied to all Tether direct users, as the other main issuers are doing. Less regulated is just FUD. Ask yourself who benefits from spreading such misinformation?
In his tweet, Ju suggested that Circle’s USDC token is “the most legally regulated stablecoin” and that it “will eventually replace (the) USDT” if and when the SEC takes action against Bitfinex.
SEC Not Targeting USDT
While bitcoiners have long voiced concern about the audit of the USDT or the lack of it, however, some like economist Alex Kruger, insist that the SEC will not be targeting the stablecoin anytime soon. In his reply to Ju’s speculation that Tether is next on the U.S. regulator’s list, Kruger argues that the “SEC wouldn’t target Tether” because the stablecoin’s issues “are not related to unregistered securities, and would fall under the purvey of a different agency.”
Similarly, lawyer Jake Chervinsky thinks it is unlikely that the SEC is the agency that will go after the USDT because stablecoins “are just about the hardest thing to classify as a security.” Instead, Chervinsky believes NYAG, which is already pursuing Tether in a Martin Act investigation, is best placed to take action.
Still, it remains to be seen if Ardoino’s latest remarks are going to put an end the persistent rumours about the USDT stablecoin.
Do you agree that the USDT stablecoin is already regulated and that the SEC cannot move against it? Tell us what you think in the comments section below.
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