Tether says it would cooperate with authorities to iron out stablecoin kinks

Tether has stated that it will cooperate with legislators around the world to address any concerns about stablecoins. 

On Friday, the company released a statement on Twitter, saying it will cooperate with lawmakers to build the sector.

Tether also included a news release from Senator Sherrod Brown, the chairman of the Senate Committee on Banking, Housing, and Urban Affairs, in the Twitter thread. 

Brown requests more information

Brown wrote to stablecoin issuers and exchanges, requesting information on how they protect investors. Coinbase, Gemini, Paxos, TrustToken, Binance US, and Tether are among the recipients of the letter.

Tether’s tweets were in response to the news release, and it appears that it, like many other stablecoin issuers, is working on compliance and wants to placate regulators. 

Tether has sparked a lot of debate in the market, mostly around the backing of the USDT supply.

Circle, the company behind the USD Coin (USDC) stablecoin, declared earlier this year that it would endeavor to improve its transparency in order to meet accountability requirements.

In early October 2021, the SEC issued a subpoena, and Circle stated that it will completely cooperate with the agency.

Stablecoins have become a major source of concern for policymakers, who believe they may pose a danger to national currencies and cause cross-border economic issues. 

Several nations are preparing to regulate stablecoins, or at the very least to investigate the particular asset.

Regulation of stablecoins is unavoidable

The latest flurry of stablecoin-related news demonstrates how serious governments are about limiting the special asset. 

This is happening on a worldwide scale; the G20 has called for stablecoin regulation before they can be used. 

They also stated that before using global stablecoins, central bank digital currencies (CBDCs) should be adopted.

Several nations, including the US, are working on stablecoin legislation. The SEC reportedly cracked down on the stablecoin market late last month, but no updates have been provided since. 

SEC Chair Gary Gensler reportedly called stablecoins “poker chips” and demanded more regulation.

The Consumer Financial Protection Bureau (CFPB) is also investigating stablecoins. In his opinion, a huge IT company issuing stablecoins might find widespread public adoption because of their large user bases. 

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