Regulation
Tether’s CEO Paolo Ardoino Calls For Stable Crypto Regulations In US
At the recent DC Fintech Week, Tether’s CEO, Paolo Ardoino, emphasized the need for sensible crypto regulations in the United States. During a remote presentation, Ardoino discussed Tether’s proactive engagement with global regulators and its commitment to compliance.
The stablecoin issuer CEO highlighted the importance of developing regulatory frameworks that foster innovation while ensuring consumer protection.
Tether CEO Urges US to Adopt Fair Crypto Regulations
In his appearance via video link at DC Fintech Week, Tether’s CEO, Paolo Ardoino, expressed optimism that the U.S. will soon introduce clear and effective regulations. He stressed that these regulations should ensure the protection of end users while allowing stablecoin innovations to flourish.
More so, Tether’s CEO pointed out that despite being Italian, he has seen the US lead the technological developments over the years. He emphasized,
“I think it’s very, very important that sensible crypto regulations and stablecoin regulations will come to fruition in a way that will protect the end users.”
Ardoino added that these regulations would allow stablecoins like USDT to be a “lifeline” for people in countries facing economic challenges.
Additionally, the Tether CEO said that the U.S. holds a crucial role in the global financial system. According to him, balanced crypto regulations could enhance stability in the market. He expressed confidence that regulatory frameworks in the U.S. will emerge to support both innovation and consumer safeguards.
Cooperation With Law Enforcement
During his presentation, Ardoino highlighted Tether’s cooperation with law enforcement agencies in 45 countries, including the FBI and the U.S. Secret Service. He noted that Tether has strengthened its compliance over the years, moving past its earlier reputation for resistance to regulatory oversight.
Ardoino remarked, citing its engagements in numerous countries,
“It would be difficult to find another financial firm that matches the level of law-enforcement cooperation and number of agency relationships that Tether has.”
He also pointed out that Tether’s proactive stance on compliance is backed by a 104% over-collateralized reserve, with 84% of its assets held in U.S. Treasuries. This, he argued, makes Tether highly resilient during periods of redemptions, stating that the company survived billions in redemptions in 2022, “a type of pressure that almost no bank was able to survive.”
The USDT company is exploring lending to commodities traders, aiming to provide quicker, easier access to capital compared to traditional banks. This new service could impact global commodity trading by offering faster settlements and fewer regulatory hurdles.
Doubling Down on Transparency and Communication
Ardoino emphasized that Tether is “doubling down” on transparency and communication. Acknowledging past criticism regarding Tether’s lack of transparency, particularly around its reserve backing, Ardoino reaffirmed the company’s commitment to improving its disclosures.
He stressed that Tether’s strategy now focuses on demonstrating that the company’s financial health is solid, with significant U.S. Treasury holdings ensuring liquidity.
“We are purchasing immense quantities of U.S. debt,” Ardoino stated, underscoring Tether’s role in providing access to U.S. dollar-based assets for emerging markets. He noted that Tether aims to expose these markets to “the best currency in the world” through its stablecoin offerings.
In addition, Congressman French Hill, speaking at the same event, provided insight into the legislative prospects for crypto regulations. Hill, who chairs the crypto panel in the House Financial Services Committee, suggested that the “lame duck” session may offer a window for advancing stablecoin and crypto legislation.
He mentioned that a gap in the defense spending package might allow financial services legislation to progress. However, he noted the legislative outcome could depend on the 2024 U.S. presidential election results.
If legislation does not pass this year, Hill said that crypto regulations would likely become a priority for 2025, especially if there are changes in leadership on the House Financial Services Committee. He added that regulations would remain a focus, with potential shifts based on the election outcome.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam recently emphasized the need for congressional action on cryptocurrency regulation and the oversight of predictive election betting. At the annual meeting of the Securities Industry and Financial Markets Association (SIFMA), Behnam outlined the urgency of establishing clear legal frameworks for these rapidly evolving sectors.
CFTC Calls for Urgent Action on Crypto Regulations and Election Betting Laws
At the SIFMA annual meeting, CFTC Chair Behnam reiterated his long-standing request for Congress to clarify its stance on crypto regulations. While acknowledging the rapid technological changes and the increasing prominence of digital assets, Behnam expressed concern about the current regulatory framework. He believes the framework lacks clarity to properly govern cryptocurrency markets.
Moreover, Behnam highlighted that the lack of comprehensive crypto regulations has left gaps in the system, particularly concerning the regulation of spot markets and the broader implications of blockchain and tokenization technology in financial markets. He stated,
“Digital assets come top of mind when it comes to regulating spot markets, but the broader question is, what is blockchain and tokenization going to do for financial markets?”
Behnam urged Congress to provide more explicit guidance on these issues.
Despite the pressing need for clearer laws, CFTC Chair expressed skepticism about the possibility of any meaningful legislative action on crypto regulations this year. Given the short legislative calendar and the focus on other urgent matters like passing a federal budget. He suggested that significant progress might have to wait until after the 2024 elections.
The Debate Over Predictive Election Betting
In addition, Behnam also called for legislative clarity on predictive election betting. The CFTC has found itself at the center of this issue, particularly regarding prediction markets that allow users to bet on the outcomes of events, including elections. Behnam noted that while these markets provide valuable forecasting tools for various sectors, they raise legal and ethical concerns when it comes to elections.
The CFTC has consistently maintained that contracts betting on election outcomes are unlawful. Behnam expressed frustration over the agency being placed in the role of an “election cop.” He suggested that the regulation of such markets should fall under more explicit legal guidelines set by Congress. He stated,
“This is a classic area where Congress should weigh in.”
Additionally, the debate over election betting has recently come to a head in a legal battle between the CFTC and Kalshi, a predictions market platform. Last year, the commission blocked Kalshi from offering election contracts, arguing that such offerings were against the public interest. Kalshi responded by suing the commission, leading to a legal dispute that remains unresolved.
In September 2023, a federal court ruled that the commission had overstepped its statutory authority in attempting to block Kalshi’s election contracts. Despite this ruling, the CFTC has continued to fight the decision, filing an appeal last month.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Coinbase has filed two new requests based on the Freedom of Information Act (FOIA) as they seek to gain regulatory clarity for the crypto industry and crypto assets in general. The crypto exchange’s Chief Legal Officer (CLO), Paul Grewal, revealed the details of the filings and mentioned the documents they hoped to obtain with each request.
Coinbase Files New Motions To Gain Regulatory Clarity
Coinbase’s CLO Paul Grewal revealed in an X post that they had filed two new sets of FOIA requests in their continued effort to gain clarity on how US regulators are approaching digital assets. He remarked that they will not relent in their efforts to provide the industry with some clarity. Grewal went on to provide insights into the specific details of each request.
He mentioned that the first request was for documents about a digital asset deposit cap that the Federal Deposit Insurance Corporation (FDIC) and other banking regulators had imposed on financial institutions. Meanwhile, the second is a request for logs showing how these agencies handle other FOIA requests. He remarked that these requests are separate from their FOIA filings from over a year ago, which are now the subject of federal lawsuits.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Stuart Alderoty, the Chief Legal Officer (CLO) of Ripple, recently provided an insightful perspective on the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). As the case progresses, Alderoty suggests that the possibilities range from a full affirmation of Judge Torres’s decision by the Second Circuit to a potential expansion of her rulings.
A less likely outcome, according to Alderoty, could see the case remanded back to Judge Torres for further deliberation.
Ripple CLO Stuart Alderoty Shares Major Insight Ahead of SEC Appeal
In a recent post on X platform, Alderoty suggested that the Second Circuit, might either affirm the decision by Judge Analisa Torres or possibly expand on her ruling. Further, Ripple CLO expressed confidence in the XRP company’s position, noting that the best outcome the SEC could hope for would be a remand to the lower court.
He highlighted the improbability of the appeal succeeding in overturning Judge Torres’s original decisions, suggesting that the best the SEC could hope for would be a remand.
Such a scenario would reopen Ripple’s original defenses, including the “Fair Notice” defense. This defense questions whether a party of ordinary intelligence would have known that their actions were against the law. Alderoty said,
“ The SEC could end up arguing to Judge Torres that she wasn’t a person of ‘ordinary intelligence’ when she ruled against them. Awkward.”
Additionally, the Ripple CLO drew an analogy between the SEC’s persistent legal pursuit and the literary work “Moby Dick,” with SEC Chair Gary Gensler cast in the role of Captain Ahab. More so, Ripple CLO humorously added that the situation now mirrors comedic elements similar to the movie “My Cousin Vinny.” This light-hearted comparison underscores the perceived overreach and determination of the SEC in its regulatory enforcement against Ripple.
Previous Rulings and Community Reactions
In the earlier stages of the litigation, the court ruled in favor of Ripple, rejecting the Securities and Exchange Commission’s arguments regarding XRP status as a security. Most recently, Alderoty shared updates with the XRP community, reassuring them that the verdict that “XRP is not a security” remains unchallenged. This clarification boosted community sentiment, with expectations of a potential rebound in XRP price.
In addition, legal analysts like James Murphy and Fred Rispoli, along with former Securities and Exchange Commission lawyer Marc Fagel, have commented on the proceedings. They highlighted that while the SEC opted not to appeal the decision on disgorgement during the remedies phase, the final judgment remains open for argument in the appellate briefs.
However, despite the Ripple vs SEC legal challenges, the impending launch of its RLUSD stablecoin could elevate XRP price towards $2 milestone.
At press time, XRP price is $0.54, marking a 3.5% increase over the past week. The cryptocurrency’s market cap stands at $30 billion, with a 24-hour trading volume of $622 million.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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