Tether Addresses US Lawmakers’ Concerns Amid Rising Regulatory Scrutiny

Tether responds to Senator Cynthia Lummis and Representative French Hill’s calls for DOJ action, emphasizing its commitment to combating illicit use of stablecoins. The cryptocurrency firm outlines its proactive measures, including a Know Your Customer (KYC) program and collaboration with surveillance tools like Chainalysis Reactor. Tether’s market share, currently at $90 billion, faces increased scrutiny amidst the broader crackdown on crypto firms in the U.S.

Tether has formally responded to inquiries from Senator Cynthia Lummis and Representative French Hill regarding the Department of Justice’s potential involvement. The communication, sent to key committees in mid-November and mid-December, underscores Tether’s dedication to combatting illicit activities involving stablecoins.

Prompted by concerns over crypto transactions allegedly supporting terrorism financing, Tether revealed its robust measures, including a comprehensive Know Your Customer (KYC) program and a vigilant transaction monitoring system. The company asserts its commitment to assisting law enforcement globally and vows to identify and freeze addresses associated with sanctions, illicit activities, or terrorism financing.

In a notable move, Tether disclosed its utilization of surveillance tools such as Chainalysis Reactor, considered a leading option for blockchain monitoring. Tether also announced a voluntary wallet-freezing policy, a departure from its previous stance, signaling an alignment with intensified regulatory pressures on crypto entities.

CEO Paolo Ardoino expressed Tether’s aspiration to be a reliable U.S. partner, emphasizing ongoing collaboration with law enforcement. The increased regulatory scrutiny in 2023 has impacted Tether’s market share, currently standing at $90 billion according to CoinMarketCap.

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