United

Wally

Tether USDt

<p>The post <a href="https://coinpedia.org/news/is-tethers-stability-at-risk-u-s-treasury-official-sounds-alarm/" rel="noopener noreferrer nofollow">Is Tether’s Stability at Risk? U.S. Treasury Official Sounds Alarm</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>The increasing global misuse of stablecoins, particularly in war, crime, and high inflation, raises significant concerns. In a speech at a Blockchain Association event, Deputy Secretary of the Treasury Wally Adeyemo emphasized the urgent need for stablecoin issuers outside the U.S. to actively prevent their dollar-backed stablecoins from being exploited by malicious entities, such as terrorists. Although he didn’t specifically name Tether, his message was a clear call to action, underscoring the importance of implementing robust measures to ensure that cryptocurrencies don’t become a haven for illegal activities.</p>
<p>This situation presents a complex challenge: Should the issuers of stablecoins be held accountable for preventing their misuse, or could such responsibilities hinder the progress and innovation in the cryptocurrency sector? Let’s explore this topic in-depth and examine the potential consequences.</p>
<h2 class="wp-block-heading" id="h-stark-s-warning-on-balancing-innovation-amp-responsibility"><strong>Stark’s Warning on Balancing Innovation &amp; Responsibility</strong></h2>
<p>Adeyemo drew attention to his previous speech at <a href="https://www.coindesk.com/tv/special-coverage/digital-assets-wally-adeyemo-20220610/?_gl=1*15lzj9y*_up*MQ..*_ga*MTE1OTYwMTQ4OC4xNzAxMzE4NTQ5*_ga_VM3STRYVN8*MTcwMTMxODU0OC4xLjAuMTcwMTMxODU0OC4wLjAuMA.." rel="noopener noreferrer nofollow">CoinDesk’s Consensus 2022</a>, where he championed crypto’s potential for innovation but urged proactive measures within the industry to deter its use by transnational criminal organizations and terrorists.</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">U.S. Treasury Undersecretary Wally Adeyemo warned that U.S. dollar-backed stablecoin providers based outside the United States cannot be allowed to enjoy the privilege of using U.S. currency without shouldering the responsibility of preventing terrorists from abusing their…</p>— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1730056555226345794?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 30, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>Adeyemo criticized the need for more responses from several firms, both large and small, in addressing illicit activities within the crypto sphere. He underscored the gravity of this situation as a clear and present threat to national security, referencing the U.S. authorities’ settlement with Binance. This settlement highlighted allegations of Binance being utilized for facilitating illegal transactions involving terrorism, drug trafficking, and exploitation.</p>
<p>With a stern tone, Adeyemo directly addressed those within the digital asset industry who believe they are beyond the reach of the law, cautioning that such practices aiding criminals, terrorists, and rogue states won’t go unchecked. He unequivocally stated that accountability would be enforced.</p>
<h2 class="wp-block-heading" id="h-role-of-crypto-mixers-nbsp"><strong>Role of Crypto Mixers?&nbsp;</strong></h2>
<p>Moreover, Adeyemo also advised that the crypto sector uses information exchanges like U.S. banks to detect and punish terrorists. According to the Treasury, Sinbad, a crypto mixing service, was involved in North Korean hacker transactions, highlighting the government’s commitment to combating illicit financial operations.</p>
<p>Confirming the same, Chainalysis’ annual report highlighted Sinbad.io, an anonymous founder’s crypto mixer service, as the key tool in North Korean state-backed hacking group Lazarus in 2022. Experts at Elliptic supported this assessment, claiming Sinbad was a rebranded version of Blender, a mixer blacklisted by OFAC in 2022.</p>
<p>Amidst Stark’s warning, Tether USDt has traded near its midway for five days. The coin is 0.09% below its five-day high and 0.04% above its low of $0.999623000621796. Stark’s warning and Sinbad’s exposure show how vulnerable coins are without crypto regulations. Do you agree?</p>

Is Tether’s Stability at Risk? U.S. Treasury Official Sounds Alarm

Table of Contents

CoinPedia News

Other articles published on Nov 30, 2023

How DeFi Can Bridge the Forex Gap in Africa, According to Banking CEO

Grayscale Makes 2 Changes for Spot Bitcoin ETF Application: Here are the Details!

Brand exodus from X expected after Elon Musk’s verbal attack

China’s Ministry of Public Security Cracks Down on Crypto Currency Fraud and Hacking Crimes

Binance To End Support For BUSD Stablecoin In December

The Prospects of Chainlink (LINK) as the Year Nears its End

Join our free newsletter for daily crypto updates!