Tether, the company responsible for the largest stablecoin, has taken significant measures to address concerns raised by US Senator Cynthia Lummis and Rep. French Hill regarding the alleged use of stablecoins in illicit activities. In its effort to combat issues such as funding terrorism and money laundering, Tether has released two letters directed at the US Senate Committee on Banking, Housing, and Urban Affairs and the House Financial Services Committee. These letters demonstrate Tether’s commitment to maintaining transparency and following strict regulations.
One of the key points emphasized in Tether’s communication is its robust know-your-customer (KYC) and anti-money laundering (AML) policies. Tether proudly stated that it has undergone a Title 31 examination conducted by the Internal Revenue Service (IRS) on behalf of the Financial Crimes Enforcement Network (FinCEN). Additionally, Tether has enlisted a prominent Washington DC law firm to conduct an Independent Review of its KYC/AML, Bank Secrecy Act (BSA), and On-Boarding program. These measures ensure that Tether’s policies adhere to the highest standards.
Tether remains committed to combating terrorist financing, complying with the Bank Secrecy Act and U.S. Sanctions Laws, and implementing rigorous customer due diligence and transaction screening processes. These efforts aim to prevent illicit activities and maintain the integrity of the stablecoin ecosystem.
Continuing its commitment to fighting illicit activities, Tether has implemented a new policy that allows for the freezing of wallets and assets associated with illegal actions. The company outlined this policy in its second letter, along with emphasizing its active collaboration with law enforcement agencies. Tether has established partnerships with key entities such as the U.S. Department of Justice and the U.S. Secret Service. Additionally, Tether is actively seeking opportunities to collaborate with the Federal Bureau of Investigation to combat illegal activities and contribute to the recovery of funds.
Tether’s newly appointed CEO, Paolo Ardoino, expressed his gratitude for the opportunity to address these concerns with the US government. Ardoino emphasized Tether’s commitment to being a “world-class partner” for US authorities. The company aims to continue assisting law enforcement agencies and contribute to the global expansion of dollar hegemony. Tether’s market dominance is evident in its recent achievement of surpassing a staggering $90 billion in market capitalization.
Tether’s proactive approach in addressing concerns raised by US senators demonstrates its commitment to combat illicit activities and maintain the highest standards of compliance. By highlighting its strong KYC and AML policies, as well as its collaboration with law enforcement agencies, Tether aims to reinforce its role as a trusted stablecoin issuer. As the company continues to navigate the evolving landscape of digital currencies, its dedication to transparency and security remains paramount.
