The company behind the world’s leading stablecoin Tether is facing greater regulatory pressure this week, and US financial regulators are reviewing the composition of their reserves.
According to Bloomberg’s report on July 27 Report The acting auditor of the currency, Michael Hsu, stated that regulators are investigating Tether’s commercial paper inventory to see if each USDT token is really backed by the equivalent of 1 U.S. dollar.
A group of regulators led by Treasury Secretary Janet Yellen held high-level closed-door talks on the risks posed by stablecoins, especially Tether. The report quoted “informed sources” as saying that the President’s Financial Markets Working Group was concerned about Tether’s claims that it holds a large amount of commercial paper. This type of investment involves debt issued by a company to meet its short-term funding needs.
The group compared this situation with unregulated money market mutual funds that may be vulnerable to investor outflows.According to its transparency, the current circulating supply of USDT is 62 billion Report.
In mid-May, Tether Reveals a loose breakdown of its reserves Indicates that it invests in instruments other than cash and cash equivalents, including bitcoin, bonds, secured loans and most commercial papers. In an interview with CNBC on July 21, Tether’s general counsel Stuart Hoegner Commitment to conduct a comprehensive financial audit of its reserves In a few months, not a few years.
On July 19, Yelon urged legislators “Move quickly” to ensure that stablecoins face appropriate rules, And developed a regulatory framework for it.
Shady super encoder
On July 27th, Senator Elizabeth Warren, a cryptocurrency cynical senator, sent a letter to Janet Yellen requesting to strengthen the supervision of the crypto industry.in a hearing In the Senate Banking Committee, Warren once again expressed her opposition to cryptocurrencies:
“Instead of letting our financial system be subject to the whim of the big banks, cryptocurrency puts the system in the whim of some shady, faceless group of super coders and miners, which doesn’t sound good to me.”
Partner of Anderson Kill Law, Preston Byrne, Comment “The more terrifying reality here is that the financial system is in the hands of Elizabeth Warren.”