The largest stablecoin by market cap USDTissuer of Tether It has caused market declines many times to date. The endless FUDs diminished as the company made greater efforts to comply with existing rules. Speaking at today’s event, Ardoino made statements about the regulations.
Cryptocurrency Regulations USA
Speaking at the DC Fintech Week event in Washington Tether CEO Paolo Ardoino sounded quite optimistic. Despite years of efforts, the US has not yet been able to pass cryptocurrency regulations in the Senate. Although bipartisan support gives hope for the latest bill, it seems difficult to achieve this year due to the election agenda.
US makes sense cryptocurrency Stating that it is extremely important to implement the regulations, Tether CEO also demands this for customer protection.
“I and we as a company are in favor of regulations, but regulations must help protect the customer.”
At the same event, Rep. French Hill, who chairs the crypto panel within the House Financial Services Committee, likened crypto regulations to a lame duck. The final weeks of the session also gave hope that the crypto and stablecoin bill might come to the fore.
So what happens if it doesn’t arrive this year? Hill, who said he would run as a candidate after the retirement of Representative Patrick McHenry (R.N.C.), argued that this issue would clearly be a priority in the new term sessions that will start in 2025.
Tether and Support for Law Enforcement
Ardoino also explained how Tether helps law enforcement in 45 countries, including the Federal Bureau of Investigation and the US Secret Service. Hundreds of millions of users interact with USDT An asset that criminals also use from time to time. Criminals’ job becomes even more difficult due to the company’s strong cooperation with law enforcement.
reserves
Finally, the issue that Tether CEO touched upon was reserves and redemption ability. Rapid outflows are a big risk for stablecoins, and if their reserves are not backed by easily convertible assets, the peg could go bad.
The CEO reminded again that they made billions of dollars in sudden redemptions in 2022 and survived even after converting more than 10% of their reserves into cash. He also underlined that this is a stress test that many banks cannot overcome.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
