Tether, the provider of USDT (the most prominent stablecoin around the globe) has replied in multiple Twitter posts stating that it will collaborate with the policymakers, following the issuance of letters for various providers of stablecoins, on the behalf of the Senate Banking Committee of the United States recently this week to investigate regarding the operational features thereof. In the respective tweets, Tether stated that it admires the interest taken by lawmakers in the functionality of stablecoins around the ecosystem of cryptocurrency.
Tether mentioned that it is of great importance that they are now working in collaboration to construct the respective industry. Being the blockchain technology’s pioneers as well as the leaders in innovation and transparency, it said, the company is devoted to making sure that the consumers thereof are adequately protected with having the appropriate instruments needed for their success. In the tweets of Monday, the Blockchain Association’s director of government relations, Ron Hammond, pointed out that the providers of stablecoins include Tether, Binance U.S., TrustToken, Paxos, Centre, Gemini, and Coinbase.
The company, in the respective letters, stated that many risks related to the investor protection are posed by the stablecoins along with a rise in several concerns associated with the market integrity, as noted in the latest report made by the Working Group on Financial Markets that is working under the President. It was requested by the committee that the issuers of stablecoin should provide particular information including the fundamental purchases, limitations, minting process, as well as the redemption and issuance data. It also suggested making a summary of the internal reviews conducted by the company regarding the effect of particular redemption levels over the stablecoin, taking account of its transferability into the U.S.D., or the effect thereof on the financial status of the firm.
The firms related to stablecoins are required to answer the respective inquiries till 3rd December. In the recent month, up to US$41M was fined over Tether on the behalf of the CFTC (Commodity Futures Trading Commission) of the United States regarding the misleading or untrue claims stating that the USDT stablecoin thereof was completely supported by the respective fiat currencies. It was later stated by Tether after the order of CFTC that it did not find any trouble in the present activities of Tether.