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> Has your favorite exchange ever been audited by the SEC to confirm it is actually playing by theses rules? Coinbase does not trade what are currently conside

> Has your favorite exchange ever been audited by the SEC to confirm it is actually playing by theses rules? Coinbase does not trade what are currently considered securities by law, so its trading operations are not subject to SEC oversight. However, Coinbase has gone through the SEC listing process for its common stock. https://www.sec.gov/Archives/edgar/data/1679788/000162828021003168/coinbaseglobalincs-1.htm https://www.sec.gov/Archives/edgar/data/1679788/000162828021... > I think it would be incredibly easy to maintain --- simply because no one ever audits their books. "We undergo regular financial and security audits by external firms. SOC 1 Type II, SOC 2 Type II."

jqpabc123 5y ago
Coinbase is the exception --- not the rule. They also fully comply with KYC so there is no pretense of anonymity with Coinbase. If the majority are colluding to game the price of USDT, Coinbase will be forced to either go along or not trade in Tether. And since Tether is used in more than half of all crypto trades, refusing the Tether fraud would place them at a serious disadvantage.
- everfree 5y ago
  Is Kraken another exception? They also trade USDT and comply with KYC, and they undergo semiannual third party audits.
  - jqpabc123 5y ago
    Possibly. As I tried to explain above, with control of a majority of the Tether trading volume, *you* could pretty much set the price any way you want. Anyone else who wants to participate and trade would have little choice but to follow your lead. In addition, let's assume you have access to unlimited funds (by simply minting more Tethers) and *you* would have everything you need in place to control the "market price" and commit Tether fraud on a massive scale. In other words, *you* would be just like the current crypto marketplace.
    - everfree 5y ago
      > Anyone else who wants to participate and trade would have little choice but to follow your lead. Honest exchanges could let individuals trade it among themselves using an order book at no particular price, which is what they do. I wouldn't call that following a lead.
      - jqpabc123 5y ago
        Honest exchanges wouldn't be minting what they're marketing. The NYSE can't fabricate stocks they are a market maker for. Not legally anyway.

jqpabc123 5y ago

Coinbase is the exception --- not the rule. They also fully comply with KYC so there is no pretense of anonymity with Coinbase. If the majority are colluding to game the price of USDT, Coinbase will be forced to either go along or not trade in Tether. And since Tether is used in more than half of all crypto trades, refusing the Tether fraud would place them at a serious disadvantage.

everfree 5y ago
Is Kraken another exception? They also trade USDT and comply with KYC, and they undergo semiannual third party audits.
- jqpabc123 5y ago
  Possibly. As I tried to explain above, with control of a majority of the Tether trading volume, *you* could pretty much set the price any way you want. Anyone else who wants to participate and trade would have little choice but to follow your lead. In addition, let's assume you have access to unlimited funds (by simply minting more Tethers) and *you* would have everything you need in place to control the "market price" and commit Tether fraud on a massive scale. In other words, *you* would be just like the current crypto marketplace.
  - everfree 5y ago
    > Anyone else who wants to participate and trade would have little choice but to follow your lead. Honest exchanges could let individuals trade it among themselves using an order book at no particular price, which is what they do. I wouldn't call that following a lead.
    - jqpabc123 5y ago
      Honest exchanges wouldn't be minting what they're marketing. The NYSE can't fabricate stocks they are a market maker for. Not legally anyway.