After the SEC filed the lawsuit against Ripple Labs for offering unregistered securities, the crypto community has been thinking about the potential reason behind the move. Some state that the U.S. regulators may ramp up oversight of the crypto space as Bitcoin surges. The SEC has cracked down on ICOs and crowdfunded token sales. However, as SEC considers XRP as a security, the crypto community is apprehensive about which crypto-assets could face the same fate.
Several cryptocurrencies and similar assets are under consideration. Whereas, Bitfinex Tether CTO, Paolo Ardoino, has stepped in to draw attention and states there is no indication that the SEC is approaching them. Ardoino explained via Twitter that Tether is fully regulated and is in compliance with FinCEN. However, Tether recently hit $21 billion in market capitalization. He bashes those who repeat the intentional lies, blaming them for spreading FUD.
Tether has reserves equivalent to 100% of outstanding tokens.
Moreover the opponents began to employ the regulation card to remain in the good books of the users. Tether confirms that the USDT token has the backing of reserves equal to 100% of the outstanding coins. While the token issuers want to look nonchalant about a potential lawsuit that could shake the company at its foundation, Tether’s legal miseries have been already stacking up.
However, the U.S. regulators have accused Bitfinex and its associated token using $700 million from the stablecoin reserves. The reserves helped in covering up the losses of $850 million. The Crypto exchange defended itself by stating that the money was deposited with a Panamanian-company called Crypto Capital. However, it was seized and safeguarded in various jurisdictions. It involves Poland, Portugal, the UK, and the United States. Moreover, in all this there Bitfinex was not at fault; the exchange defended.
In its latest event, the major crypto exchange lost a legal battle to contest the court decision that destroyed its effort to avoid handing over documents to the New York Attorney General on the grounds of jurisdictional overreach. While XRP’s fate is unknown yet, an similar legal action against Tether would be a significant setback to other major stablecoins. The stablecoins involve Circle’s coin, Paxos Standard, and the Gemini Dollar.
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