The Commodity Futures Trading Commission fined Tether, the largest stablecoin issuer, $41 million for misleading claims that its U.S. dollar token was fully backed by reserves.
Top stablecoin issuer fined $41M over reserve claims
October 18, 2021 / By ICBA
The Commodity Futures Trading Commission fined Tether, the largest stablecoin issuer, $41 million for misleading claims that its U.S. dollar token was fully backed by reserves.
The Commodity Futures Trading Commission fined Tether, the largest stablecoin issuer, $41 million for misleading claims that its U.S. dollar token was fully backed by reserves.
Details: The CFTC said Tether’s stablecoin was fully backed for only one-quarter of a 26-month period between 2016 and 2018. The agency also announced a $1.5 million settlement with Bitfinex for engaging in illegal retail commodity transactions.
Report: A Financial Stability Oversight Council meeting scheduled for today is set to include an update on a President’s Working Group on Financial Markets report on stablecoins. The report is expected to focus on consumer and investor protection, preventing financial crimes, systemic integrity, and financial stability.
More: Recent ICBA blog posts detail growing stablecoin risks to consumers and the financial system, how policymakers are responding, and what decentralized finance means for community banks.
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