Biden is tethered to more stablecoin regulationThe Biden administration is not moving on its stablecoin position, demanding more regulation for the dollar-backed tokens.
👩⚖️ The House of Biden released its long-awaited stablecoin report and says that as “compelling” as they are, they need to be classified as banks for regulatory purposes.
🙃 Some investors are pleased despite the gruntwork of regulation, because they want a safety net after the recent Squid fiasco. Others think the administration is withholding financial freedom.
🏎 Tether has just been overtaken by Solana (SOLUSD) as the fourth largest crypto by market cap.
Tether faces the musicStablecoin Tether has gotten itself into some hot water with the Commodity Futures Trading Commission (CFTC) and has been fined $41 million for claiming to have enough U.S. dollar cash reserves to cover every tokens it issues.
The CFTC has slapped Tether and cryptocurrency exchange Bitfinex, which controls Tether, with a multimillion dollar fine after the regulator found that the stablecoin falsely claimed that its tokens were fully backed by dollars. Tether, which is the biggest issuer world’s largest issuer of stablecoins, made claims between 2016 and 2019 that it had big enough dollar reserves to back every stablecoin in circulation – which apparently, was only true for just over 25% of the 26 month period. As the cherry on top, Tether mixed its reserved funds with its corporate funds and held some of the reserves in non-cash products. As you can imagine, regulators aren't thrilled – especially in the midst of calls for greater regulation over the crypto market – and the pair have been handed a fine of over $41 million. CFTC Chairman Rostin Behnam said:
This case highlights the expectation of honesty and transparency in the rapidly growing and developing digital assets marketplace.
Tether has issued over $69 billion in the face of soaring demand.
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