Patrick

Biden

USDC

Chuck

Tether, the issuer of the world’s biggest stablecoin, once again gained a spotlight amid recent t geopolitical events. An expert highlighted that last week, the lead <a href="https://news.todayq.com/ripples-stablecoin-soon-to-enter-crypto-market-xrp-to-blast/" rel="noopener noreferrer nofollow">stablecoin</a> regulators convened to discuss a potential path forward for stablecoin regulation with other bills.&nbsp; Regulatory crackdown waiting? 
United States Representatives Patrick McHenry, Maxine Waters, and Chuck Schumer, Majority Leader of the Senate, expect that this legislative activity is crucial in a Congress struggling to pass legislation.
Ron Hammond, Director of Government Relations at Blockchain Association, stated that the current focus on stablecoin regulation shows sentiments growing from two years ago. He added that Senator Toomey, Sen. Brown, and Sen. Lummis had debated stablecoin legislation after the collapse of Terra.&nbsp;
However, the 2022 bill, which aimed to address stablecoin reserves, redemptions, and big tech’s role in finance, failed to advance due to political and timing issues.
Hammond mentioned that amid this Tether had faced major scrutiny during this period. This is due to concerns over its reserves’ composition and lack of transparency. Notably, USDT has since increased its public engagement on audits and reserves in the absence of a US presence. This has continued to raise eyebrows among policymakers.
He added that banning Tether was one idea early on. However, there is now an understanding of the adverse effects that would have on the crypto markets and US treasuries. What’s next for Tether? 
The expert highlights that another idea was to bring Tether onshore and into some form of a US compliance regime. It was supposed to be done via regulation.
Despite Tether’s working with government organizations, concerns regarding its US treasury reserves have emerged. However, many link USDT’s growth to the absence of a finalized 2022 stablecoin bill.&nbsp;
In 2023, the House Financial Services Committee made progress on a similar bill although the Biden Administration tried to alter the agreement.
As stablecoin legislation gains momentum, details on the rumored bill’s provisions and the path forward remain uncertain. Other considerations include potential SEC jurisdiction over stablecoins, political challenges related to other bills, and Congress’s capacity to finalize a deal.
The biggest stablecoin is now holding a market cap of more than $107.8 billion. There is a huge gap between the 2nd biggest stablecoin and USDT. Circle’s USDC holds a market cap of around $32.28 billion.

Tether might face regulatory heat, crackdown imminent?

Todayq News

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