These are valid concerns but I don't think are reasons not to have a blanket ban. Delay in addressing the issue is simply going to result in a worse outcome for

These are valid concerns but I don't think are reasons not to have a blanket ban. Delay in addressing the issue is simply going to result in a worse outcome for recovery because if it is a fraud[1], the ongoing costs of operation and any outflows to insiders are just going to eat away at the assets that should go back to victims. If by some strange turn of events it's not a fraud a ban would cause the backers of Tether to see sense, be transparent etc and get back on track. In the stock world, you can't have an ETF without credible audits, regulatory checks etc. Generally speaking that means if I have an ETF which someone says will track the SPX, it has an underlying asset basket comprising the stocks in the SPX and a redemption/creation mechanism where creating new units is contingent on assets being added to the basket to ensure redemption is later possible. Vice versa, redemption involves selling those assets to give back cash. You don't get to just say "don't look behind the curtain. Your gold is there but you don't get to look at it". [1] Which I have said for a very long time that it very likely _is_ simply on the basis of logic. If it's not a fraud there really is no reason whatsoever not to allow an audit and have full transparency about underlying assets. They don't do this and therefore are most likely a fraud. The reason they have always given (that giving transparency about their list of assets would allow others to duplicate their strategy) is the epitome of weaksauce and reason for concern in itself. For the people creating an ETF, the ETF is a source of funding because you have the ability to swap basket assets for units and do creative things when you see units available for purchase in the market. The edge doesn't come from having super seekrit strats about what goes in the asset basket. Any alpha from teh basket contents would cause undue volatility and the ETF not to track the reference index properly.