Banking committee sen. coinbase binance.us tether

banking committee sen. coinbase binance.us tether
Summary: https://www.theblockcrypto.com/amp/linked/125273/senate-banking-committee-chair-seeks-answers-on-stablecoins-from-centre-paxos-and-more

Tether USDT: https://www.banking.senate.gov/imo/media/doc/letter_to_tether.pdf

Circle USDC: https://www.banking.senate.gov/imo/media/doc/letter_to_circle.pdf

Binance BUSD: https://www.banking.senate.gov/imo/media/doc/letter_to_binance.us.pdf

Gemini GUSD: https://www.banking.senate.gov/imo/media/doc/letter_to_gemini.pdf

Paxos USDP: https://www.banking.senate.gov/imo/media/doc/letter_to_paxos.pdf

Trust TUSD: https://www.banking.senate.gov/imo/media/doc/letter_to_trusttoken.pdf

Coinbase: https://www.banking.senate.gov/imo/media/doc/letter_to_coinbase.pdf

These companies will be given until dec 3rd 2021 to respond to the senate chair’s request.

Tether was alleged not to be backed 1 to 1 by the US dollar by a New York Attorney General in 2019. Tether had since responded that tether was in fact only backed 74 percent. These articles by Bloomberg and The Verge summarise the controversy behind Tether.

Tether accounted for 49% of transactions for bitcoin in the 3rd quarter of 2021. Is there a possibility of other cryptocurrency markets being inflated by the use of tether as a form of exchange? Could these markets crash if tether and other stablecoins fail to prove their value?

Additionally, tether has been said to be used to manipulate bitcoin prices in 2017.

Unbacked stablecoins might have already been deeply ingrained in crypto markets as a whole. If these stablecoins collapse, the entire crypto market will go down with it too but most will eventually recover.

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