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SEC not targeting USDT

TL;DR

TL;DR Breakdown

  • Bitfinex top executive says SEC is not targeting Tether
  • Says the Stablecoin is in compliance with all KYC and AML regulations

A top executive of Bitfinex, Paolo Ardoino, has come out to pour cold water on the thoughts that US financial regulators, Securities and Exchange Commission (SEC) could be coming after Tether next.

This was in light of a tweet by the CEO of CryptoQuant, Ki Young Ju, who tweeted that the current bull run of the crypto market depended greatly on the Tether, so if it is a target of the SEC, it could portend a lot of bad news for the crypto industry.

Ardoino in his response, however said that Tether was complying strictly with the Know Your Customer (KYC) and Anti-money laundering (AML) policies set by the relevant authorities like FinCEN and the rest of them. He added that those who keep saying the Stablecoin is unregulated are only trying to spread fear, uncertainty and doubt (FUD).

Ardoino’s tweet addresses the important issue of the KYC and AML regulation, however, his response did not highlight if the digital asset might have breached a security law, especially when one considers its dollar reserves question.

Sometimes in 2019, the authorities in New York had alleged that both Tether and Bitfinex were trading unregistered securities offering. According to authorities, the firm’s were also loaning the Stablecoin to investors which raised the question of if the coin was fully backed by the US Dollars.

Exchanges Delist XRP because of SEC impending lawsuit against Ripple

Due to the impending litigation against Ripple, many crypto exchange firms have started suspended trading the native token of the crypto firm.

Trading platforms like Coinbase, Binance, Okcoin and others have announced that they would stop trading XRP on their platform.

We also earlier reported of a Coinbase user that is suing the company for listing XRP on its platform. The user alleges that Coinbase was in the know that the token was a security and not a commodity.

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Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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