Since Ripple sued by SEC due to selling unlicensed securities in the form of XRP, many cryptocurrency world activists began to spread that Tether is the next potential target. However, some others believe that Tether will escape from SEC investigations. Recently, Paolo Ardoino tweeted that SEC do not have any solid reasons to warrant any traditional investigations.
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SEC would not target Tether
Paolo Ardoino is the outspoken chief technology officer of Bitfinex. Recently, he talked about the current situation of Tether. He believes SEC would not be able to sue Tether the same as Ripple.
In fact, a trend started on twitter, which began spreading “Fear, Uncertainly and doubt” (FUD). For instance, Ki Young Ju, CryptoQuant CEO, was one of these people. He mentioned in his tweet that Tether could be the next target of SEC and it will have a negative impact on this crypto. In response, Ardoino stated that Tether strongly applyied KYC and AML regulations. In addition, Treasury Department’s Financial Crimes Enforcement Network (FinCEN) approved them.
Although Tether is applying KYC and AML regulations completely, Ki Young concern is about skipping and skirting security laws, which could compromise this stablecoin’s dollar reserves.
Tether will escape from SEC investigations; Tether activities are under question
The New York attorney general submitted evidences, which shows Tether and Bitfinex ran an unregistered security offering in 2019. He mentioned in this document that Tether raised suspicious funds, which are not fully backed by U.S dollar.
Such these issues around Tether seems common. Previously, in 2018, John Griffin and Amin Shams published a paper. They argued in this paper that BTC price manipulated by USDT several times.
The Commodity Futures Trading Commission investigated Tether and Bitfinex in order to make sure that there is an equivalent dollar reserve for all USDT tokens. However, they could not find any proof that the company did anything wrong.