Halt! Tether Trouble Ahead: U.S. Treasury Officials Sound the Alarm

U.S. Treasury Warns of Scrutiny Towards Stablecoins Like Tether

US Treasury Official warns that stablecoins like Tether could be under scrutiny.

If you think stablecoins are as innocent as a fluffy cloud drifting in the sky, think again! In a recent speech at a Blockchain Association event, Deputy Secretary of the Treasury, Wally Adeyemo, didn’t mince words when it came to non-U.S. stablecoin issuers using dollar backing. In other words, Tether (USDT) was front and center in his crosshairs!

Adeyemo warned about the dangers of letting these stablecoin providers run amok without proper regulations to prevent bad actors from wreaking havoc. He exclaimed, “We cannot allow dollar-backed stablecoin providers outside the United States to have the privilege of using our currency without the responsibility of putting in place procedures to prevent terrorists from abusing their platform.” Ouch! Shots fired!

But wait, there’s more! Adeyemo also took a moment to remind everyone about his previous speech at CoinDesk’s Consensus 2022, where he lauded the potential of crypto while stressing the importance of keeping it out of the hands of criminals. Unfortunately, his call to action hasn’t exactly been met with open arms by the industry.

“Some have heeded our warnings and taken steps to prevent illicit activity,” Adeyemo lamented, “but too many firms – both big and small – are turning a blind eye, endangering our national security.” He even dropped the bombshell of Binance’s recent settlement where it was discovered the exchange had been used by terrorists, drug traffickers, and even perpetrators of child sexual abuse. Yikes!

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To those in the digital asset industry who believe they can evade the law or brush off its importance, Adeyemo delivered a straightforward message: “We will find you and hold you accountable.” Consider that a mic drop moment!

Adeyemo also proposed that the crypto sector take a page out of the U.S. banking industry’s book by establishing information exchanges to identify and root out these shady characters. It’s like creating a Batman signal to shine a light on the Joker-like scammers. Who’s with him?

On the same day, the U.S. Treasury didn’t waste any time taking swift action. They slapped another crypto mixing service called Sinbad with sanctions, citing its involvement in transactions linked to North Korean hacking. Talk about throwing down the gauntlet!

So, fellow digital asset investors, the message is clear: the U.S. Treasury means business. They’re not sitting back, twiddling their thumbs while criminals run amok in the crypto space. Brace yourselves, troublemakers, because the long arm of the law is reaching out to bring you to justice!

UPDATE (November 29, 2023, 16:47 UTC): Adeyemo ain’t done yet! Stay tuned for more on this developing story.

Note: No fluffy clouds were harmed in the making of this article. The same cannot be said for the perpetrators of illicit activities in the crypto world, though!

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