Yesterday, Newsbit revealed that, according to a report from The Wall Street Journalthe US government may have launched an investigation into Tether (USDT) for alleged violations of sanctions and anti-money laundering regulations. This revelation has created tension in the crypto market. Paolo Ardoino, CEO of Tether, responded to the rumors via X and stated that this is “old news”.
Wat is Tether?
Tether, with a market capitalization of approximately $120 billion and the largest stablecoin worldwide, is essential for fast, bankless transactions in the crypto market.
Despite Tether’s importance, the company has been controversial due to questions about the coverage of their tokens. Tether has not yet had an independent audit conducted by any of the big four accounting firms, which continues to create uncertainty.
A Tether spokesperson stated that the WSJ’s reporting is speculative and emphasized that the company works closely with law enforcement agencies to combat criminal use of USDT.
Competition with Circle and the growth of stablecoins
Unlike Tether, Circle, the company behind USD Coin (USDC), emphasizes transparency through regular audits and monthly confirmations by an independent accountant. Jeremy Allaire, CEO of Circle, is optimistic about the future of stablecoins. He predicts that within ten years, these digital currencies could account for 5-10% of the total global money supply, which amounts to $5 to $10 trillion. According to Allaire, we are only at the beginning of the integration of stablecoins into the global financial system.
Conclusion
The speculation about Tether and the optimism surrounding stablecoins such as USDC show how big a role these coins can play in the financial world. The future will show whether Tether retains its leading position and how the stablecoin market will further evolve.
Source: https://newsbit.nl/crypto-nieuws-tether-ceo-ontkent-geruchten-over-amerikaans-onderzoek/
