Questions About Tether Just Won’t Go Away. Does the Crypto Market Care?
As the crypto market continues to rally, an old debate reignites on whether the most important stablecoin in trading is really stable.
In a closely watched case with wide-ranging implications for the crypto market, Tether has admitted no wrongdoing and will provide reports on USDT’s reserve composition for two years.
"If any issues arise that could affect the willingness or ability of both domestic and foreign investors to use USDT, the most likely result would be a severe liquidity shock to the broader cryptocurrency market," the report says.
The settlement appears to remove what might have been a systemic threat to cryptocurrency markets.
The NYU economist also warned bitcoin could "collapse" if Tether and Bitfinex are indicted this year.
Bitfinex says early Friday it repaid fully of the loan to Tether.