Tether crypto, the issuer of the world’s most popular stablecoin in the USDT, has responded in several tweets that it will work with policymakers after the US Senate Banking Committee sent letters to several stablecoin issuers earlier this week asking about their operational characteristics.
Tether crypto and letter for issuers
Tether said in a tweet that it appreciated lawmakers’ interest in the operation of stablecoins throughout the crypto ecosystem.
“It’s very important that we work together to build this industry. As pioneers of blockchain technology and leaders in transparency and innovation, Tether strives to ensure that our customers are properly protected and have the tools they need to succeed.”
– said Tether.
In Monday’s tweets, Ron Hammond, director of government relations at the Blockchain Association, said that stablecoin publishers include Coinbase, Gemini, Circle, Paxos, TrustToken, Center, Binance U.S., and Tether.
Is Tether a Risk for investors?
In the letters, the committee said that stablecoins pose a risk to investor protection and raise several concerns about market integrity, as documented in a recent report by the Presidential Financial Markets Working Group.
The committee asked stablecoin issuers to offer specific information, including primary purchases, the minting process, restrictions, and emissions and repurchase data.
The committee also asked them to summarize any internal reviews or studies that companies have conducted on how specific levels of buyouts would affect stablecoins, including convertibility to US dollars, or how they would affect the financial position of companies. Stablecoin companies have until December 3 to answer these questions.
Just last month, Tether was fined by the US Commodity Futures Trading Commission (CFTC) for $ 41 million for “false or misleading” claims that the relevant fiat currencies fully cover its stable USD market.
Tether coin later claimed that the CFTC order “did not find any problems with Tether’s current operations” and that “these problems were fully resolved when the Terms of Service were updated in February 2019”.