Bitfinex Paolo Ardoino’s CTO opposed rumors that the company’s Tether stablecoin may become the next target of the US Securities and Exchange Commission (SEC). Bitfinex executives insisted that the Tether stablecoin, which has a market value of more than $20 billion, is a properly registered and regulated cryptocurrency.
The so-called disinformation campaign
In response to rumors on social media, the CTO stated that the USDT stablecoin may fall into a dilemma similar to the Ripple XRP token. After the SEC sued Ripple for allegedly violating the Securities Law, the value of XRP tokens immediately fell. In addition, many cryptocurrency exchanges that are wary of the meaning of the lawsuit have delisted the token.
However, Ardoino denied the rumors in its response to Cryptoquant CEO Ki Ki Ju Ju and accused the former of spreading wrong information. The CTO continues to claim that the company’s stablecoins comply with regulations just like its competitors. The CTO said in a tweet:
Reminder: Tether has been registered and supervised as all centralized competitors in FinCEN. Like other major issuers, strict KYC/AML applies to all direct users of Tether. Only FUD is less regulated. Ask yourself, who is good for spreading this kind of misinformation?
In his tweet, Ju suggested that Circle’s USDC token is “the most legally regulated stablecoin” and that if the SEC takes action against Bitfinex, it will “eventually replace USDT.”
SEC is not targeting USDT
Although Bitcoin has long expressed concerns about USDT audits or lack of audits, some people like economist Alex Kruger insist that the SEC will not target stablecoins in the near future. In response to Ju’s speculation, Kruger believed that Tether ranked second in the list of US regulators. He believed that “the SEC will not target Tether” because the issue of stablecoins “has nothing to do with unregistered securities and will be Another agency is responsible”. “
Similarly, lawyer Jake Chervinsky believes that the Securities and Exchange Commission is unlikely to be an institution following USDT, because stablecoins are “almost the hardest thing to classify as securities.” On the contrary, Chervinsky believes that NYAG, which has hunted down Tether in the Martin Act investigation, is the most suitable to take action.
Nevertheless, it remains to be seen whether Ardoino’s latest remarks will end the ongoing rumors about USDT stablecoins.
Do you agree that the USDT stablecoin has been regulated and the SEC cannot object? Tell us what you think in the comments section below.
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