John Reed Stark on Twitter listed various problems plaguing Tether. According to the former official, the USDT steblecoin issuer could be the next domino knuckle.
Tether operates without regulatory restrictions because there is simply no legal framework in the U.S. that normally regulates stabelcoin issuers.
“The core business, the essence of everything Tether does, has to do solely with Tether’s financial reserves.
Nevertheless, these stocks remain unaudited, unconfirmed, and therefore questionable,” the former SEC official is confident.
Now, by law, a stable coin issuer is not required to make its reserves transparent. That is, the company may not provide any additional confirmation, which leaves more questions about its stock.
Tether released its latest attestation report, showing a net income of $1.5 billion for the first quarter of the year.
The company holds $1.5 billion in bitcoin reserves (about 2% of total assets) and $3.4 billion in gold reserves, which is about 4% of total total total assets.
Despite these problems, Tether USDT remains the largest stablcoin. It has a market capitalization of $82.53 billion and 24-hour sales of $24.18 billion.