Re:Exposing Tether [video]
by espadrine on Friday June 18, 2021 @10:46AM
(#27550916)
> While Tether may not be a bank, their users aren't just users: they're holders of Tether credit
Contractually, they are not considered creditors. Furthermore, liability for any loss is explicitly put on the user. (Whether the contract is valid can be litigated though.)
> isn't Tether legally required to sell or transfer assets to service the redemption
Sadly not… From the contract: “Tether makes no representations or warranties about whether Tether Tokens that may be traded on the Site may be traded on the Site at any point in the future, if at all.”
In fact, US citizens are already disallowed from redeeming tokens, and have been for years.
Re:Exposing Tether [video]
by ethbr0 on Friday June 18, 2021 @04:30PM
(#27554662)
The prohibition on US citizens redeeming tokens probably stems from the SEC's declaration that duck typing will be applied to cryptocurrencies trying to avoid classification as securities.
Contractually, they are not considered creditors. Furthermore, liability for any loss is explicitly put on the user. (Whether the contract is valid can be litigated though.)
> isn't Tether legally required to sell or transfer assets to service the redemption
Sadly not… From the contract: “Tether makes no representations or warranties about whether Tether Tokens that may be traded on the Site may be traded on the Site at any point in the future, if at all.”
In fact, US citizens are already disallowed from redeeming tokens, and have been for years.