Former CFTC chairman demands new regulation of fasteners and stablecoins

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A former chairman of the Commodity Futures Trading Commission called for tighter regulation of stablecoins, cryptocurrencies created to peg other assets such as fiat currencies.

Timothy Massad, who chaired the committee for most of the second phase of the Obama administration, told CNBC’s Jim Cramer that Tether Limited struck a deal with the New York attorney general in February, making investors transparent . He said he could improve his sex.

Tether Limited is the company that issues Tether, the most valuable stable coin and the third most valuable cryptocurrency after Bitcoin and Ethereum.

“We need a better regulatory framework for fasteners and other stablecoins,” Masad, senior researcher at the Harvard Kennedy School of Government, told Mad Money Wednesday. “We need a better framework to make sure we can’t do something like this.”

Tether and its subsidiary Bitfinex worked with prosecutors for $ 18.5 million to end an investigation into allegations that a company owned by Ifinex transferred funds to cover a loss of $ 850 million. Accepted to settle.

The New York attorney general claimed that in 2018 and 2019, the company misrepresented the status of its reserves. The two companies did not admit the fraud, but Tether was ordered to submit a quarterly statement of reservations. I created my first report in March.

The March report revealed some opaque uses of money invested in coins. According to the report, Tether held 13% of its assets in the form of secured loans and 15% in the form of commercial paper or unsecured short-term loans, Masad said.

“I don’t know what kind of loan it is and who they are,” and “I don’t know what kind of paper they’re buying,” he said. “Everything is a concern, so we need to disclose more here. I think there is. “

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