John Reed Stark, the former U.S. Securities and Exchange Commission (SEC) lawyer, has recently expressed his worries about the popular cryptocurrency Tether, accusing it of being a “counterfeiter.” In a series of tweets, Stark argued that there is a lack of transparency and adequate oversight with Tether. He has discouraged Paolo Ardoino, the CTO of Bitfinex, from using attestation reports as evidence of their financial stability as these attestations do not make for legitimate baseline and are unethical and misleading. Despite being labelled “USDT” in an attempt to mimic the U.S. Dollar, Stark stressed that Tether does not share any features with the currency. Thus, Stark sees Tether’s conduct as counterfeiting.

Ardoino has not contested Stark’s allegations yet. However, this is not the first time Tether has come under fire for its lack of transparency. In fact, its elusive bookkeeping practices have raised doubts across the crypto industry as they question the real value of digital currencies. At the same time, Tether has recently announced a net profit of $1.5 billion in the first quarter of 2023, that was attributed to steady token circulation and diversification of reserves.

The accusations of Stark have highlighted the bigger issue of the global crypto industry needing clear guidelines and reliable regulatory frameworks. Banks and other financial institutions are still in hesitation due to the absence of proper rules and the difference of opinion on the matter, which in turn has put a standstill on cryptocurrency’s mass adoption. Despite all the hardships, the crypto industry is actively pressing for regulation and urges for acceptance from the other side.



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