T.G.I.F. It is a day which many of us look forward to after a long week at work. However, for Tether Limited (the company which issues USD Tether or commonly known as USDT), it is a day of reckoning as it faces a deadline of January 15, 2021, to submit all documents requested by the New York Attorney General’s office.
Fear of the unknown regarding the world’s number one stablecoin may have dented a runup of cryptocurrencies’ prices. However, for the initiated, these set of legal issues troubling Tether have already been brewing for a few years. Sometimes, humanity just need that jolt of reminder to create a knee-jerk reaction to financial markets.
However, if one looks at the numbers, it is worth noting that USDT only accounts for a small fraction of the market capitalization of bitcoin and other major cryptocurrencies. Many top digital asset exchanges reported top volumes for popular cryptocurrencies pegged to USD and not USDT.
With the new incoming Biden administration, there is also hope that the NYAG office may take a more objective approach in handling this case. Tether has always maintained that it is able to back every USDT with the US Dollar or equivalent.
Perhaps, as we enter into 2021, we believe the cryptoverse would like Tether to embark on greater transparency in order to squash all doubts once and for all.
