The difference between Tether and a standard bank actually seems pretty small to me. Tether doesn't look like they have enough money to pay back people holding

The difference between Tether and a standard bank actually seems pretty small to me. Tether doesn't look like they have enough money to pay back people holding Tether tokens. Banks don't have enough money to pay back depositors. Both muddle along fine. Theoretically the banks have lower risk due to regulatory actions. We've had enough financial crisises now that a reasonable person could discount that. Given the levels of debt and spring-loaded derivatives, any institution is at risk these days. We can imagine a history book entry saying "XYZ couldn't return their depositors money" for pretty any actor in these markets. The banks get bailouts of course, but that tends to be action outside the official rules; so maybe Tether will get it to? The differences here are mostly about how long the game has been played, not what the game is. Tether doesn't seem to be less reputable than the banks. It outlasted Credit Suisse for example. I'm not calling anything, but maybe Tether is going to behave a lot like another bank.