Tether, which claims to be the largest company in the cryptocurrency industry, has made public its recent letters to the members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House Financial Services Committee.
Last October, a letter authored by Senator Cynthia Lummis and Representative French Hill, was sent to the US Department of Justice asking them to make a determination regarding the ongoing investigation into Binance and Tether. Binance has settled the allegations against them. The allegations revolved around cases where crypto was being used for nefarious activities including sanction violations.
The letters posted by Tether highlight their claim they are fighting the illicit use of stablecoins.
Tether’s recent letters “reaffirm the company’s continuing efforts to assist U.S. law enforcement and regulatory authorities in their efforts to combat terrorist financing and other illicit activities.”
The November 16th letter “outlines Tether’s Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards, and describes its proactive and extensive cooperation with law enforcement agencies worldwide, including the U.S. Department of Justice and the U.S. Secret Service.”
The December 15th letter “lays out Tether’s proactive decision to align with the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List, extending sanctions controls to the secondary market to ensure comprehensive security measures.”
The key points highlighted in the letter include:
- Tether’s launch of a wallet-freezing policy “on December 1, 2023, is a landmark initiative for enhanced security and compliance within the cryptocurrency ecosystem.”
- The strategic freezing of wallets associated “with the SDN List is a robust move to safeguard users and maintain the integrity of the stablecoin ecosystem.”
- Tether’s active role in “assisting law enforcement agencies, includes partnerships with the U.S. Department of Justice, U.S. Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation.” This collaboration aims to “combat illegal activities and aid in fund recovery.”
Tether says that it aspires to set new industry standards “through its commitment to security, regulatory compliance, and support for law enforcement, hoping to establish these practices as norms within the cryptocurrency industry.”
Paolo Ardoino, CEO of Tether, said:
“Tether is grateful for the opportunity to address the concerns raised by U.S. lawmakers, and we are committed to continuing Tether’s close work with law enforcement in the U.S. and globally. Tether seeks to be a world class partner to the U.S. as we continue to assist law enforcement and expand dollar hegemony globally.”
Following claims that crypto was being used to finance Hamas, among other bad actors, scrutiny has increased regarding the operations of crypto firms. Lummis and French are both known for being supportive of Fintech, and Lummis helped to author a bill that would create a regulatory framework for digital assets.