• News
    • Bitcoin
    • Altcoins
    • Blockchain
    • DeFi
    • Regulation
    • Scams
  • NFT
  • Metaverse
  • Analysis
  • Learn
  • Videos
  • Blogs
  • Market Cap
  • Shop
What's Hot

Chinese industry group warns Web3 and DeFi high-return deals hide classic Ponzi engines

2025-07-10

Tokenized Stock EXPLOSION: Solana RWAs & Equities Will TAKE OVER!

2025-07-10

How To Mine Bitcoin At Home

2025-07-10

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

Facebook Twitter Instagram
Crypto Investor News Network
  • News
    • Bitcoin
    • Altcoins
    • Blockchain
    • DeFi
    • Regulation
    • Scams
  • NFT

    All Eyes on Art: Upcoming Collections to Watch the Week of February 4

    2025-02-05

    Creator of rabbit AI assistant has hidden NFT past

    2024-05-02

    Ethereum tops daily NFT sales at US$7 mln, ends weakest month of 2024

    2024-05-02

    Top NFT Airdrops and Giveaways for May 2024

    2024-05-02

    Casio Launches NFT Collection Celebrating 50th Anniversary

    2024-05-01
  • Metaverse

    Shib: The Metaverse – Part of the Expanding Shiba Inu Ecosystem

    2025-01-03

    Experience to Earn: Everdome’s Metaverse Frontier

    2024-12-30

    Beyond Bots: Meta Motivo and the Dawn of Humanlike Digital Life

    2024-12-13

    Exploring NetVRk: What Is Behind This AI-Driven Virtual Universe?

    2024-10-28

    Council of Europe Highlights Metaverse’s Impact on Privacy and Democracy

    2024-09-05
  • Analysis

    Crypto Exchange Coinbase Lists New DeFi Altcoin Project Built on Base Blockchain

    2023-12-13

    Ethereum Price Bears Keep Pushing, Why Decline Isn’t Over Yet

    2023-12-13

    Trader Bullish on Cosmos (ATOM), Says One Dogecoin Rival Setting Up for Next Leg Up – Here’s His Outlook

    2023-12-13

    AVAX Price Pumps 50% and Dumps 15%, Why Uptrend Is Still Strong

    2023-12-13

    Top Trader Predicts Parabolic Rally for Solana Competitor – Here’s His Upside Target

    2023-12-13
  • Learn

    What Is Copy Trading in Crypto? A Beginner’s Guide

    2025-07-10

    A Step-by-Step Guide for Risk-Takers

    2025-07-09

    What is Spot Trading in Crypto? A Beginner’s Guide to How It Works

    2025-07-09

    How It Works and What to Watch Out For

    2025-07-09

    Crypto Risk Management Strategies for Trading (2025)

    2025-07-07
  • Videos

    Tokenized Stock EXPLOSION: Solana RWAs & Equities Will TAKE OVER!

    2025-07-10

    How To Mine Bitcoin At Home

    2025-07-10

    Time Is Running Out to Accumulate Bitcoin at These Levels

    2025-07-09

    Korea Goes ALL IN On Crypto: ETFs, Institutions, XRP & More!

    2025-07-09

    Don’t Miss These Bullish Events That Will Help Bitcoin

    2025-07-08
  • Blogs
  • Market Cap
  • Shop
Facebook Twitter Instagram TikTok
Crypto Investor News Network
Home»Regulation»Former SEC official calls for US ban on Tether, calls it a ‘mammoth house of cards’
Regulation

Former SEC official calls for US ban on Tether, calls it a ‘mammoth house of cards’

2023-05-11No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Former SEC official calls for US ban on Tether, calls it a ‘mammoth house of cards’
Share
Facebook Twitter LinkedIn Pinterest Email

Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark urged U.S. financial regulators to ban crypto firms from offering Tether USDT, describing the firm as a “mammoth house of cards.”

In a May 9 long-form Twitter post, Stark touched on different issues plaguing Tether to drive home his point. According to him, his experience and study of markets and financial statements over the past years make him believe that the stablecoin issuer could be the next domino to fall.

Tether operates in a regulatory vacuum

Stark noted that Tether has operated without a regulatory constraint as it has no legal framework guiding its operations in the U.S. He added that there are no “U.S. requirements on how reserves must be invested, nor any requirements for audits or reporting.”

“Tether’s fundamental business, the essence of everything Tether does, is tied exclusively to Tether’s financial reserves. Yet those reserves remain unaudited, unconfirmed and therefore dubious,” he added.

According to him, this is a red flag as Tether users are left to deal with its “condescending and ineffective public relations blather, hype and bluster.”

Questions about Tether’s attestation

Stark criticized Tether’s attestation, saying it cannot replace an audit. According to him, audits are designed to look for potential risks, while attestations only examine if the presented data is accurate as of that moment.

Stark said:

“Under any circumstance, an attestation is not the same thing as an audit — and this kind of ‘unverified snapshot’ would never pass any sort of regulatory muster.”

Besides that, the stablecoin issuer was no longer legally required to submit its reserves attestations. This means the company might not present any further attestations, leaving more questions about its reserves.

See also  Top Analyst Advises Followers To ‘Erase Context, Trade Price’, Calls Bitcoin to $30,000–$35,000

Meanwhile, Tether released its latest attestation report earlier today, showing a net profit of $1.5 billion during the first quarter of the year.

“If Tether’s internal controls are so lacking that an immediate accounting of its financial reserves – to the penny – cannot be done with the click of a mouse, that speaks volumes as to Tether’s reliability and credibility.”

Stark further wondered why Tether’s Chief Technology Officer Paolo Ardonio constantly discussed the company’s financial conditions and not its Chief Financial Officer.

Calls for ban

Stark noted that Ontario, Canada, has banned crypto platforms from offering Tether USDT and urged the U.S. to do the same.

Earlier this year, Crypto.com delisted USDT for Canadians, citing compliance with regulatory demands.

Meanwhile, this is not the first time that Tether would be facing questions about its reserves and operations. The stablecoin issuer has consistently maintained that its business was managed correctly and had no exposure to any struggling crypto firms.

Despite these issues, Tether’s USDT token remains the largest stablecoin. It has a market cap of $82.53 billion and a 24-hour volume of $24.18 billion.

Ban calls cards House mammoth official SEC Tether
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Trump, Tether, & $1M BTC?! What REALLY Happened at Bitcoin 2025!

2025-06-10

The SEC Has Made a Decision To Delay The XRP ETF Approval! What This Means

2025-04-30

OFFICIAL TRUMP COIN TO $100! HERE IS WHY YOU NEED TO LOAD UP ON $TRUMP! $TRUMP PRICE PREDICTION

2025-04-28

3 G20 Nations Just Went All In On Bitcoin — It’s Official

2025-04-23
Add A Comment

Leave A Reply Cancel Reply

Top Posts
Videos

This Signals A MAJOR Crypto Rally Is Coming (Hint: Altcoin Season)

2025-02-14

In this stream, Josh talks about what is causing the market bounce and what is…

NFT

Rapper P Diddy’s controversial footage available for sale as an NFT

2024-03-30

While many await to see the next developments after the Feds raided Sean Diddy Combs’…

Altcoins

Tron [TRX] leads in key metric, but will its price react accordingly

2023-03-20

Tron beats rival blockchain networks by garnering the highest daily active user count. TRX showed…

Subscribe to Updates

Get the latest news and Update from CINN about Crypto, Metaverse and NFT.

Editors Picks

Chinese industry group warns Web3 and DeFi high-return deals hide classic Ponzi engines

2025-07-10

Tokenized Stock EXPLOSION: Solana RWAs & Equities Will TAKE OVER!

2025-07-10

How To Mine Bitcoin At Home

2025-07-10

What Is Copy Trading in Crypto? A Beginner’s Guide

2025-07-10
Crypto Investor News Network
Facebook Twitter Instagram TikTok
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Disclouser
© 2025 - All rights are reserved.

Type above and press Enter to search. Press Esc to cancel.

bitcoin
Bitcoin (BTC) $ 117,748.55
ethereum
Ethereum (ETH) $ 2,965.63
xrp
XRP (XRP) $ 2.76
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 693.52
solana
Solana (SOL) $ 163.06
usd-coin
USDC (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.201029
tron
TRON (TRX) $ 0.304802
staked-ether
Lido Staked Ether (STETH) $ 2,964.11
bitcoin
Bitcoin (BTC) $ 117,748.55
ethereum
Ethereum (ETH) $ 2,965.63
xrp
XRP (XRP) $ 2.76
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 693.52
solana
Solana (SOL) $ 163.06
usd-coin
USDC (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.201029
tron
TRON (TRX) $ 0.304802
staked-ether
Lido Staked Ether (STETH) $ 2,964.11