Paolo Ardoino, Bitfinex’s CTO, refuses the claims that SEC’s next target would be Bitfinex’s native stablecoin, Tether.Ardoino says that Tether is appropriately and lawfully registered with the prior approval of Regulator. Further states that the stablecoin is in compliance with the rules and regulations framed by SEC.
After filing of the suit by Securities & Commission of US (SEC) against Ripple, there were rumours that SEC’s next target would be Tether. US Regulator instituted lawsuit against Ripple and its executives on the ground that Ripple’s native stablecoinXRP was “securities” and not “cryptocurrency”.
Resultantly, XRP’s value tumbled upon violently which sent a wave of fear amongst others whose stablecoins were prevailing in the US market. Thereafter, many crypto exchanges who were offered XRP trades, immediately suspended the trade in order to avoid unwarranted circumstances.
Tether had been known to be developed as native stablecoin by a famous US based crypto exchange company called Bitfinex. Paolo Ardoino, Bitfinex’s CTO refuted the claims that Tether (USDT) would potentially be the next target of SEC. He categorically denied the claims and said that they were nothing but rumours only.
Ardoinoaccused Cryptoquant’s CEO, Ki Young Ju, of spreading the rumours and claimed Ju was trying to sabotage Tether’s business. Ardoino further apprised that when Bitfinex’sstablecoin was launched, it was with prior written approval of the US Regulator. He further pointed out that Tether’s trade had been regulated in accordance with the prescribed rules and regulations framed by SEC.
He further elaborated that the exchange firm had been strictly adhering to the Know-Your-Customer (KYC) Policy alongwith Anti Money-Laundering Policy.Also he raised an allegation against Circle’s USDC and said that they were not following both policies in letter and spirit.
Meanwhile, shared another igniting tweet in which he claimed that once SEC would take on Tether then Circle’s USDC will overpower USDT.Ju also stated that when it comes to compliance, USDC is well above USDT for sure. However, the issue between USDC and USDT had been taking an unpleasant form.
On other hand, Alex Kruger, esteemed economic, suggested that SEC wouldn’t be taking any action against Tether in the near future. He said that it would be premature to do that only because some Bitcoiners had raised concerns of USDT’s audit. Kruger also clarified that the status of USDT isn’t one of securities or that it was not registered. However, the issue of Tether may come under purview of some other authority but not under SEC.
Currently there had not been anything suggesting to the contrary against Tether with regard to SEC. With the explanation given by Adroino, it is hoped that the rumours would be put to an end. Furthermore, SEC had not pointed out any action to be taken against Tether or others after Ripple.