Tether Addresses Concerns Over Stablecoins in Letters to US Senate and House Committees
Tether, the company behind the largest stablecoin, has released two letters that were sent to the US Senate Committee on Banking, Housing, and Urban Affairs and the House Financial Services Committee. The letters were specifically addressed to Senator Cynthia Lummis and Rep. French Hill.
Addressing Concerns Raised by Lummis and Hill
The main purpose of Tether’s letters is to respond to concerns raised by both Lummis and Hill regarding the alleged use of stablecoins in illicit activities such as terrorism funding and money laundering.
KYC and AML Policies
In the first letter, Tether highlighted its KYC (Know Your Customer) and AML (Anti-Money Laundering) policies. The company stated that it has undergone a Title 31 examination of its KYC program by the IRS on behalf of FinCEN. Tether has also engaged a prominent Washington DC law firm to conduct an Independent Review of its KYC/AML, BSA (Bank Secrecy Act), and On-Boarding program to ensure they meet the highest standards.
Tether emphasized its commitment to fighting terrorist financing, complying with the Bank Secrecy Act and US Sanctions Laws, and implementing rigorous customer due diligence and transaction screening measures.
Freezing Wallets and Assets Linked to Illegal Activities
The second letter outlined Tether’s recently implemented policy that allows it to freeze wallets and assets believed to be involved in illegal activities. The company also highlighted its active role in assisting law enforcement agencies, including partnerships with the US Department of Justice, US Secret Service, and ongoing collaboration with the Federal Bureau of Investigation.
Tether’s Commitment to Collaboration and Compliance
Tether’s CEO, Paolo Ardoino, expressed gratitude for the opportunity to address these concerns with the US government. He stated that Tether aims to be a “world class partner” of US authorities as they continue to assist law enforcement and expand the global dominance of the US dollar.
Tether’s Market Dominance
Tether is the largest stablecoin issuer, and its market dominance continues to grow. Its market capitalization recently surpassed $90 billion.
Hot Take: Tether Responds to Concerns Over Stablecoins
Tether has taken a proactive approach by addressing concerns raised by US lawmakers regarding stablecoins’ involvement in illicit activities. Through its letters to the US Senate and House Committees, Tether highlighted its robust KYC and AML policies, its ability to freeze wallets and assets linked to illegal activities, and its active collaboration with law enforcement agencies. The company expressed its commitment to compliance with US regulations and its dedication to fighting terrorist financing. As the largest stablecoin issuer, Tether aims to be a trusted partner of US authorities in their efforts to combat illegal activities. With a growing market dominance, Tether continues to play a significant role in the cryptocurrency industry.
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