Coinbase and Circle Raise Concerns about Tether in Congressional Hearing
During a United States Congressional hearing, representatives from Coinbase and Circle expressed their concerns about Tether. Caroline Hill, Circle’s Senior Director of Global Policy and Regulatory Strategy, highlighted Tether’s alleged involvement in terrorism financing activities. Hill, who previously worked for the U.S. Treasury Department, called on the Treasury to take action against companies with ties to the U.S. dollar. Grant Rabenn, Coinbase’s Director of Financial Crimes Legal, accused offshore entities of evading anti-money laundering regulations and providing a safe haven for criminals.
Coinbase Accuses Offshore Entities of Playing ‘Jurisdictional Wack-a-Mole’
Grant Rabenn from Coinbase emphasized the exchange’s compliance with OFAC and criticized competitors for facilitating criminal activities through offshore platforms. Rabenn described these entities as playing a game of “jurisdictional wack-a-mole” to evade anti-money laundering rules.
Tether Responds to Accusations
Tether’s CEO, Paolo Ardoino, responded to the accusations made by Circle and Coinbase during the Congressional hearing. Ardoino called misleading Congress a desperate act and stated that Tether has made significant efforts to combat illicit crypto activities.
Implications for Stablecoin Issuers
These statements by Circle and Coinbase may signify an escalation in the rivalry between stablecoin issuers and their partner exchanges. With support from the U.S. Treasury Department, Circle and Coinbase could potentially pose a significant challenge to Tether in the stablecoin market.
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