US Commodity Futures Trading Commission (CFTC), Tether by reaching an agreement with the, he classified stablecoins as commodities for the first time.
A $41 Million Fine
CFTC, which filed a number of charges against Tether, primarily for its untrue misleading statements. The Commission decided to pay Tether’s $41 million fine, demanding that it stop other violations of the Commodity Exchange Act (CEA) and CFTC regulations as requested.
CFTC, Tether’s USDTAlthough he claims to support the 100% with cash, he says that all reserves are backed by various financial instruments, and not by cash. For this reason, the CFTC is requesting jurisdiction over stablecoins because it is the first regulator to take the relevant official actions.
SEC Is Activated
However, the United States Securities and Exchange Commission (SEC), noting that the temporary request of such jurisdictions is a security matter, in addition, stable cryptocurrencies fall under the jurisdiction of the OCTOBERC and should be regulated like a bank.
The fact that there are different regulatory agencies that claim the same jurisdiction over the same asset has led to the proposal of a single federal regulatory agency for crypto currency in order to eliminate uncertainty.
Regulators Are Most Often Working On Stablecoins
With the increase in the total market value of the crypto currency ecosystem gaining momentum as of 2020, regulatory agencies are working hard to create a legal basis for crypto assets. However, the most concentrated area of regulatory agencies here as a whole is stablecoins, due to the thoughts that they may pose a threat to the stability of traditional finance. Regulators want to introduce bank-based legal regulations for companies that launch these stable cryptocurrencies, the value of which is fixed in fiat currencies.