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Tether Banker Says the Stablecoin is Fully-backed

Altcoin Explorer: Tether, The World's First Successful Stablecoin

Altcoin Explorer: Tether, The World's First Successful StablecoinDeltec, the Tether (USDT) banker based in the Bahamas, says the popular stablecoin is fully-backed, downplaying long-standing reports of the integrity of its client’s reserves. The declaration is coming as both Tether and Bitfinex are submitting documents to the New York Attorney General (NYAG) concerning an $850 million embezzlement case from April 2019. Tether is

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Deltec, the Tether (USDT) banker based in the Bahamas, says the popular stablecoin is fully-backed, downplaying long-standing reports of the integrity of its client’s reserves. The declaration is coming as both Tether and Bitfinex are submitting documents to the New York Attorney General (NYAG) concerning an $850 million embezzlement case from April 2019.

Tether is More than 100% Backed by Fiat Reserves

Appearing on an episode of Laura Shin’s Unchained Podcast, Gregory Pepin, deputy CEO at Deltec clarified Tether’s reserve status, stating:

“Every tether is backed by a reserve and their reserve is more than what is in circulation. We can see it first hand, so I can confirm that.”

Pepin’s remarks offer an improved assessment of the level to which Tether is backed with one of the company’s lawyers revealing in 2019 that the popular stablecoin was only 74 percent backed by fiat reserves. The extent of Tether’s fiat currency reserve has always been a source of intense speculation within and outside the cryptocurrency space.

Sitting on a market capitalization north of $24 billion, Tether facilitates a major chunk of the global crypto trading market. Indeed, a cross-section of the industry has expressed fears that the market could collapse if the popular stablecoin were to fail.

Indeed, Tether, along the decentralized finance (DeFi) market is also a major contributor to the increased level of activity on the Ethereum network leading to high network fees when the chain becomes overly congested.

As previously reported by BTCManager, more USDT is now being routed to the Tron network than on Ethereum. This news marks a reversal of the trend reported in September 2020 when the company announced plans to swap 1 billion USDT from the Tron to the Ethereum network.

The Deltec CEO also cleared the air on reports that the bank recently acquired Bitcoin on behalf of its clients. According to Pepin, the purchase was not done on behalf of Tether, stating: “We have a very competent and well-respected investment team. And as part of their portfolio education for customers, they actually did an allocation in bitcoin on behalf of those customers.”

Meanwhile, reports indicate that the Tether Treasury might be audited in 2021. Lawyers for both Bitfinex and Tether are still submitting documents to the NYAG in the $850 million embezzlement case against the two companies.

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Source: https://btcmanager.com/tether-banker-says-the-stablecoin-is-fully-backed/

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NEXT Chain: New Generation Blockchain With Eyes on the DeFi Industry

[Featured Content] The cryptocurrency industry is booming throughout the past year, and the increase in the total market capitalization is definitive proof. The market is, at the time of this writing, valued at about $1.5 trillion. The same can be said about the DeFi industry. The total value locked in various protocols exceeds $39 billion, […]

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[Featured Content] The cryptocurrency industry is booming throughout the past year, and the increase in the total market capitalization is definitive proof. The market is, at the time of this writing, valued at about $1.5 trillion. The same can be said about the DeFi industry. The total value locked in various protocols exceeds $39 billion, […] Checkout PrimeXBT
Source: https://cryptopotato.com/next-chain-new-generation-blockchain-with-eyes-on-the-defi-industry/

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‘Bitcoin Senator’ Lummis Optimistic About Crypto Tax Reform

Sen. Cynthia Lummis, the first in the Chamber to own Bitcoin, says bipartisan support will accelerate crypto tax reform.

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Sen. Cynthia Lummis (R-Wy) expressed hope on Wednesday that Congress will be able to reform the tax rules governing cryptocurrency, which have been a longtime bugbear for Bitcoin owners and the burgeoning crypto industry.

“We’re optimistic we can find bipartisan agreement on that issue,” said Lummis during a meeting with crypto executives and policy makers on the social media app Clubhouse.

The comment from Lummis, who has owned Bitcoin since 2013, came in response to a question about whether Congress will pass a proposed law calling for a “de minimis” tax exemption for small cryptocurrency transactions.

Currently, IRS guidance stipulates that any minor crypto transaction—such as sending $5 worth of Bitcoin to a friend or using it to buy a cup of coffee—can amount to a capital gains event. Critics say this rule creates needless tax headaches, and discourages innovation by limiting the use of crypto in day-to-day transactions.

And while the IRS has become preoccupied with collecting tax on crypto—a question about virtual currency is now at the top of filers’ income tax return—the agency has done little to simplify the process for reporting it.

Lummis’s interest could help accelerate the passage of crypto tax reform, which has been proposed in bills before the House of Representatives, but never in the Senate. Lummis, whose home state of Wyoming has branded itself as a crypto hub, also pointed to a new Financial Innovation Caucus she is leading with Sen. Kyrsten Sinema (D-Az) as evidence of bipartisan interest in the issue.

Bitcoiner Cynthia Lummis Wins US Senate Seat

Policy researchers on the Clubhouse call cautioned, however, that passage of crypto legislation is unlikely to occur in the near future. The Biden Administration and Congress is currently wrangling over weighty issues related to the pandemic and economic stimulus, so crypto taxation—a relatively boutique issue—is unlikely to be a high priority.

More broadly, members of the call noted that lawmakers are becoming more knowledgable about cryptocurrency, and not only at the federal level.

Nathan McCauley, the CEO of crypto storage service Anchorage, said that his company has been speaking with several state governments about adding crypto to their corporate treasuries—a move that would mirror what big private sector companies like Tesla and Square have done in recent months.

McCauley suggested the states’ interest in crypto is related to a search for alternate finance and investing options at a time when bond markets are in a prolonged slump.

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Source: https://decrypt.co/60059/bitcoin-senator-lummis-crypto-tax-reform

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Billionaire Hedge Fund Manager and a Former CFTC Chairman Reportedly Invested in Crypto Firm

The hedge fund manager who predicted BTC’s rise to $40k in 2018 and the former CFTC Chair, a.k.a ‘crypto dad’, have invested in BlockTower Capital.

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The hedge fund manager who predicted BTC’s rise to $40k in 2018 and the former CFTC Chair, a.k.a ‘crypto dad’, have invested in BlockTower Capital. Checkout PrimeXBT
Source: https://cryptopotato.com/former-cftc-chairman-and-a-billionaire-hedge-fund-manager-reportedly-invested-in-crypto-firm/

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Bitcoin Price Analysis: Back Above $50K, But Facing Huge Resistance Now

Bitcoin is up by a solid 6% today as the primary cryptocurrency surged by over $3000 over the past 24 hours. Quick recap: bitcoin is recovering after a heavy correction over the past week, in which the cryptocurrency dropped by around 25% as it broke beneath the February ascending price channel (as shown on the […]

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Bitcoin is up by a solid 6% today as the primary cryptocurrency surged by over $3000 over the past 24 hours. Quick recap: bitcoin is recovering after a heavy correction over the past week, in which the cryptocurrency dropped by around 25% as it broke beneath the February ascending price channel (as shown on the […] Checkout PrimeXBT
Source: https://cryptopotato.com/bitcoin-price-analysis-back-above-50k-but-facing-huge-resistance-now/

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