The US Congress presented two bills aimed at regulating fixed digital currencies. These laws are likely to prevent El Salvador -based Tether from exporting new USDT units in the USA. In addition, the risk of Tether’s removal from the list of well -known stock exchanges has come to the agenda.
Laws and Terms
The GENIUS law, led by Bill Hagerty in the Senate, requires that they have one hundred percent reserve from companies in order to export fixed assets and use a US -based accounting company. The Stable Law carrying similar regulations was brought to the agenda in the House of Representatives. Both drafts aim to restrict the operation of companies that do not comply with the determined criteria in the US market.
Audit and Market Risks
Tether gives periodical statements instead of regular audit report. This can lead to various concerns between market actors. Exchange operating in the US may limit Tether to the processing of regulatory risks to evaluate regulatory risks. On the other hand, Tether’s rival USDC stands out with regular inspections and statements.
An authorized congress employee said, “Tether will fall like other exporters. If he does not comply, he cannot transactions in the United States ”and emphasized the importance of compliance conditions.
Tether CEO Paolo Ardoino said that major audit companies give priority to the bank sector, so they do not prefer to supervise their companies. Ardoino’s statement came at a time when the audit and cooperation issues within the sector were discussed.
It may take months for the bills to turn into a legislation. The regulations of the application may also affect the risk management strategies of the stock exchanges. The compliance process of companies covered by the law may increase market confidence and transparency.
Congress plans lead to large -scale discussions and evaluations, while changes in the approach of sector actors and investors are expected.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
