Tether takes an interesting stance, USDT benefits from it
In an unprecedented move, Tether [USDT] has defied Office of Foreign Assets Control (OFAC) sanctions. The organization has decided to go against the OFAC on the grounds of the latter not indicating “that a stablecoin issuer is expected to freeze secondary market addresses.”
Tether, thus stood its ground and decided in favor of not freezing sanctioned Tornado Cash addresses. The organization even took to Twitter and posted a tweet to describe its thoughts behind the decision-making.
Tether Holds Firm on Decision Not To Freeze Tornado Cash Addresses, Awaits Law Enforcement Instruction https://t.co/zpsI9lKLlf
— Tether (@Tether_to) August 24, 2022
What’s all the fuss about
In the statement issued by Tether, the organization emphasized the fact that they have been complying with various regulatory and law enforcement officers. Furthermore, they have also been extremely punctual while providing solutions and information.
Tether also stated that no law enforcement agency approached the former requesting them to freeze the assets of any secondary market addresses.
The Tether team further went on to state,
“No US law enforcement agency or regulator has made such a request despite our near daily contact with US law enforcement whose requests always provide precise details.”
The organization justified its stance and made sure that people realize the company is complying with all regulatory agencies.
However, Tether has also stated that freezing addresses could increase volatility and uncertainty in the crypto market.
The company cited examples of when law enforcement specifically asked them to not freeze the addresses of certain people. These people were reportedly suspected of criminal behavior.
The Tether team further criticized USDC’s decision to freeze the addresses and called the move premature.
Well, this decision by Tether has garnered a positive response from social media, with multiple people applauding Tether’s stance.
It has also brought light to their stablecoin USDT. It has been on the receiving end of some positive chatter on social media.
But this event is not the only reason why USDT has gotten some popularity over the last few days.
Binance, the cryptocurrency exchange, was expected to de-list the USDT token. But it has delayed the de-listing at the moment.
Additionally, a lot of people have perceived this as a bullish sign. Furthermore, the event has restored faith in the stablecoins. Binance has not given any specific reason for postponing the de-listing though.