Since Tether is reportedly set to face legal action by the U.S. Department of Justice (US) DOJ, it can be said that crypto investors are starting to feel uncomfortable sitting down.
To make matters worse, Tether became a hot topic in a closed-door meeting between a monitoring team led by Treasury Secretary Janet Yellen and the President’s Working Group for Financial Markets recently.
What caught their attention was about Tether’s alleged possession of a number of commercial papers. Commercial paper is a short -term or unsecured debt instrument issued by a business or corporation.
They equate the situation with unregulated money market mutual funds, which are likely to be affected by unrest among investors.
At the same time, Acting Currency Controller Michael Hsu revealed that supervisors are reviewing Tether’s trading papers to determine if the USDT is really supported by the US dollar.
This is reminiscent of fines to be paid by Tether and Bitfinex, totaling $ 18.5 million in February for loss -related issues and fraud.
Just as Federal Reserves chairman Jerome Powell hoped, Yellen also wants stablecoins to be legalized and a legal framework to begin to be established.
The meeting also discussed issues related to Facebook's digital coin, Diem. They found Diem emerged as a new threat involving its use among Facebook users. For now, the social media platform records 3 billion monthly active users.
Most recently on Tuesday, Senator Elizabeth Warren has called for Yellen to introduce stricter laws against the crypto sector.
