As Congress prepares to consider stablecoin regulation, Congressman Warren Davidson said about the financial risks posed by stablecoins, “Tether is a time bomb.”
“Due to the lack of transparency or disclosure They admit that they have commercial documents. But they didn’t reveal what it was. That’s what makes us think of a framework that forces disclosure for investor protection.”
Davidson said: “Regulators should be more interested in Tether, and there is good reason the SEC should be more interested in Tether than it is to look at Ripple and XRP.”
Davidson is a member of The Congressional Blockchain Caucus and the House Financial Services Committee are currently considering a report on stablecoins from the President’s Working Group on Financial Markets by Nellie Liang, Assistant Secretary of the Treasury. Domestic Finance Department will lead such consideration This is likely to drive PWG’s request for Congress to limit the issuance of stablecoins to depository institutions. which mainly refers to the bank
But while the specific framework for regulating stablecoin remains uncertain, Tether, the largest stablecoin operator, is still uncertain. And it has long been criticized for its project transparency practices.
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