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I mean, basically you're correct, but they are claiming that they don't have to be pulled kicking and screaming into compliance, but rather they are easy for la
by rossdavidh 3y ago
I mean, basically you're correct, but they are claiming that they don't have to be pulled kicking and screaming into compliance, but rather they are easy for law enforcement to work with.
In other words, please don't let the SEC find an excuse to go after us.
To me, it's oddly reminiscent of SBF testifying to Congress that they were the responsible ones who are in favor of regulation on crypto, in order to polish their image as a reputable financial institution. Doesn't mean they're going to end up like SBF (or CZ), but it does reveal similar motivations.
- Geisterde 3y agoI dont think they will end up like cz, they are one of the biggest buyers of government bonds. The way skeptics in the space take it is that they offer an outlet for a cbdc thats compatible with the existing banking system.
- seanhunter 3y agoThe treasury market is so big I would be surprised if that is a consideration but I could be wrong. There is $25tn notional outstanding and a lot of players in the market have been complaining about lack of liquidity for a while now so if Tether was to completely evapourate, having on large passive investor out of the picture should (I would think) make it better for everyone else if they notice at all. Here’s more detail from the NY fed about treasury liquidity overall https://libertystreeteconomics.newyorkfed.org/2023/10/how-has-treasury-market-liquidity-evolved-in-2023/ https://libertystreeteconomics.newyorkfed.org/2023/10/how-ha...
- Geisterde 3y agoThe liquidity issue is on the buyer side, there arent enough buyers of government bonds, which is why weve now had a couple rocky bond auctions. If there wasnt enough bonds to buy then interest rates would be in decline as banks outbid each other.
- Zanfa 3y agoAre they though? They say they are, but who knows?