Tether has agreed to work with policymakers. This decision was made after the U.S Senate Banking Committee sent some letters to Tether and some other stablecoin issuers to know more about their operational features.
Tether tweeted that it is grateful for the lawmakers’ interest in how stablecoins operate across the crypto ecosystem. Tether said:
“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.”
In a tweet, the director of government relations at the Blockchain Association, Ron Hammond, revealed that the Stablecoin issuers are TrustToken, Coinbase, Binance U.S, Circle, Centre, Paxos, Gemini, and Tether.
According to the letters, the committee mentioned that stablecoins raise market integrity concerns and pose a risk to investor protection. The committee asked that the stablecoin issuers should provide some information such as limitations, minting process, basic purchases, as well as redemption and issuance data. The committee also requested that they:
“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 committee also requested that these stablecoin companies respond to these inquiries by December 3. Recently, the U.S Commodity Futures Trading Commission fined Tether over “false or misleading” claims that its USDT stablecoin was fully supported by corresponding fiat currencies. However, Tether maintained that the CTFC’s order didn’t find any issues linked to their current operations.
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Wilson is a successful crypto analyst and content writer with many years of writing experience in finance and blockchain fields. His interests are in crypto-asset research and technical analysis, Fintech, Blockchain, DeFi, NFTs, and Personal Finance.