- John Reed Stark cited a number of theses
- See for yourself what the USDT problem is
Former SEC head John Reed Stark has called on US financial regulators to ban crypto firms from trading with the USDT stablecoin. He called the issuer Tether a “giant house of cards”.
The appeal turned out to be very voluminous, the politician gives many arguments in favor of his criticism.
Here are the short abstracts.
- Tether Regulatory Vacuum. The company operates without regulatory restrictions, as there is no clear legal framework in the legislation.
- Fake certifications are meaningless. Stark noted that Tether is not audited, and only offers “attestation.” It is made by “random” firms registered in the Cayman Islands, with 5 people in the state.
- Question about reserves. By law, the issuer of stablecoins is no longer required to present its reserves. That is, the company does not provide any additional confirmation. “That raises a lot of questions about her holdings.”
- House of cards. Stark recalled that Tether recently paid a fine in a case of mixing client and corporate funds. Based on all these disturbing “calls”, the politician calls Tether a big house of cards.
In the end, Stark called for a ban on USDT, as Canada had already done. Recall that Cryptocom recently removed USDT from the Canadian platform, fulfilling the requirements of the local regulator.
