Reviewing Tether documents.
The article discusses the release of documents related to Tether’s reserves, which were obtained through a Freedom of Information Law request filed by blockchain in 2021 after a legal battle with Tether. The documents reveal that Tether had billions of dollars’ worth of commercial paper issued by financial institutions worldwide, with funds held by a number of banks. The question of whether Tether’s stablecoin, USDT, is fully backed by reserves has been a longstanding one, with skeptics being vindicated in 2019 when it was announced that there was an $850 million hole caused by Tether loaning funds from its reserve to Bitfinex. The documents obtained by blockchain include details about the commercial paper and securities issued by banks to Tether, portfolio reports from banks holding Tether’s funds, and letters from Tether’s counsel to the New York State Attorney General’s office detailing the company’s protocols. Tether has yet to respond to detailed questions sent to the company by external spokespeople. The article also includes a section on other news in the cryptocurrency world.The following is a schedule of events for the week:
Monday: The House of Lords advanced the U.K.’s Financial Services and Markets Bill at 13:30 UTC (2:30 p.m. BST).
Tuesday: A hearing took place in the BlockFi bankruptcy case at 15:30 UTC (11:30 a.m. ET).
– The Senate Banking Committee will hold a hearing on Fed board nominees at 13:30 UTC (9:30 a.m. ET).
– Federal Reserve Chair Jerome Powell will testify before the House Financial Services Committee at 14:00 UTC (10:00 a.m. ET).
– There will be a hearing on Core Scientific’s ongoing bankruptcy efforts, this time tied to a GEM Mining motion addressing certain contracts at 18:00 UTC (2:00 p.m. CT).
- MAS proposes digital money protocol including CBDCs and stablecoins.
- Track and report crypto transactions for taxes.
- Bill for Digital Euro is ready, but politicians are not convinced.
– The House Financial Services Committee will hold a hearing on SEC oversight at 13:00 UTC (9:00 a.m. ET).
– Federal Reserve Chair Jerome Powell will testify before the Senate Banking Committee at 14:00 UTC (10:00 a.m. ET).
– The House Financial Services Committee will hold a hearing on SEC’s Trading and Markets Division oversight at 14:30 UTC (10:30 a.m. ET).
Friday: There will be a press conference closing out the Financial Action Task Force plenary session at 15:00 UTC (17:00 CEST).
In other news:
– The U.S. Securities and Exchange Commission (SEC) has asked European regulators for information on Binance and its local activities.
– Crypto.com had an internal trading desk, but told other companies it did not, according to the Financial Times.
– Depositors at Silicon Valley Bank’s Cayman Islands branch are not protected by the Federal Deposit Insurance Corporation’s seizure and sale of the bank to First Citizens Bancshares, reports the Wall Street Journal.
– Reddit is trying to remove moderators who have labeled their subreddits “NSFW,” which limits ad reach within those communities. Many Reddit communities went dark in protest of Reddit’s move to kill third-party applications.
If you have any feedback or suggestions for next week’s discussion, you can email the author at [email protected] or find them on Twitter @nikhileshde. You can also join the group conversation on Telegram. See you next week!