Tether and Bitfinex say they no longer oppose the New York Freedom of Information Law (FOIL). The announcement was made this morning as Tether/Bitfinex say the move is to highlight their support of transparency in the digital asset sector.
Tether is the top dollar-based stablecoin in the world, and Bitfinex is a crypto trading company. The two entities are sister firms.
The two companies said that despite their concerns regarding the nature of the most recent NY FOIL request received by Tether and Bitfinex, they will no longer appeal the FOIL request. CoinDesk filed a FOIL request about Tether’s reserves in 2021.
Several journos were mentioned by name, including Zeke Faux, Shane Shifflett, and Ada Hui. Tether/Bitfinex said that Faux’s work had “extended beyond the boundaries of professional journalism” in the past. The firms added that inaccurate reporting had taken place by publications like WSJ.com and Bloomberg. Faux is currently an investigative reporter for Bloomberg. He has written a book entitled “Number Go Up: Inside Crypto’s Wild Rise and Staggering Fall.”
The two crypto firms stated that they “stand as the most transparent companies in their industries” and their “dedication to transparency never compromises our commitment to handling business information responsibly.” The firms added that they adhere to ethical reporting standards and transparency does “not equate to unrestricted public disclosure of all documents.”
Tether has been pummeled by the media in the past as questions arose regarding the backing of the stablecoin. Today, Tether issues periodic statements attesting to the one-to-one backing in an attempt to alleviate any questions. Tether was also a target of an investigation by the New York Attorney General that ended in a penalty of $18.5 million.
Tether, as the top stablecoin, plays an important role in the crypto ecosystem, providing an onramp to trading in digital assets. Yet federal regulations for the stablecoin market have remained elusive as Congress dithers.