The firm behind the world’s leading stablecoin, Tether, is facing more regulatory pressure this week with U.S. financial watchdogs scrutinizing the composition of its reserves.Read more
The U.S. Department of Justice has opened a criminal probe against Tether Limited.
The investigation is focusing on bank fraud committed during the company’s early years of operation.
There will be an official audit of the world’s most popular stablecoin Tether within months according to the project’s general counsel.
An audit for the world’s third-largest digital asset has been awaited for several years and increased regulatory pressure appears to have accelerated the process.
Auditors working for Circle have disclosed the reserves backing the firm’s USDC stablecoin, while Mad Money’s Jim Cramer has questioned Tether’s lack of transparency with its USDT reserves.Read more
Stablecoin usage lost steam amid the recent crypto market downturn. From peaking at nearly $2 billion on May 19, the daily transaction volume has fallen off its 2021 average by about 60%. The significant drop begs the question about stablecoin activity in the current market environment.Read more
Fed Chairman Jerome Powell told the House of Representatives today that stablecoins should face stricter regulations similar to money market funds or bank deposits.
Powell was asked specifically about Tether, currently the most valuable stablecoin, by Rep. Anthony Gonzalez (R-OH).
William Quigley, co-founder of stable coin Tether, believes that non-fungible tokens (NFTs) could become ubiquitous within a decade.
Despite mostly being known for their capacity as works of art, Quigley believes that NFTs will also add value to everyday items.
The growth of stablecoins that are not fully backed by safe assets could trigger a destabilization in short-term credit markets, rating agency Fitch has warned.
In a commentary note, the agency explained that coins that are fully backed by safe assets pose a lesser risk for the financial markets.
The stablecoin market has been growing exponentially, and last week, Eric Rosengren — president of the Federal Reserve Bank of Boston — appeared to raise a cautionary flag.Read more