Re:Terra Luna crash: CTO of Tether welcomes fair regulation ...
by jcranmer on Wednesday June 15, 2022 @09:17AM
(#31752427)
If I'm reading the interview correctly, the regulation that is desired here is something that provides a stamp of approval on Tether's current "transparency". This isn't the same regulation that most observers want for stablecoins.
The rational thing to do is to require that stablecoins provide the same transparency that money market funds do. That means publishing a detailed list of the exact securities you've invested in, i.e., 50 shares of Acme Inc's commercial paper with maturity at the end of August (and CSIP #whatever). Money market funds are able to do this, so it shouldn't be challenging for stablecoins to do this either.
Furthermore, there is absolutely nothing that prevents Tether from providing this transparency right now (assuming, of course, that Tether isn't lying about its asset composition). If you're really serious about welcoming regulation, then you should start by doing that. By not doing so, you're only making me think that you want to poison-pill any potential regulation.
The rational thing to do is to require that stablecoins provide the same transparency that money market funds do. That means publishing a detailed list of the exact securities you've invested in, i.e., 50 shares of Acme Inc's commercial paper with maturity at the end of August (and CSIP #whatever). Money market funds are able to do this, so it shouldn't be challenging for stablecoins to do this either.
Furthermore, there is absolutely nothing that prevents Tether from providing this transparency right now (assuming, of course, that Tether isn't lying about its asset composition). If you're really serious about welcoming regulation, then you should start by doing that. By not doing so, you're only making me think that you want to poison-pill any potential regulation.