While Circle and Tether have been competing with one another for control of the stablecoin market for a while, things have lately heated up following a string of increasingly public disputes between the two companies.
Early this year, USDC had a de-peg, which led to Circle, which had billions stored in Silicon Valley Bank (SVB), failing as a result. The company’s reserve management in relation to the SVB failure, according to Tether’s chief technical officer Paolo Ardoino, was a “basic mistake in risk management.”
Stay in the know on crypto by frequently visiting Crypto News Today
The New York Attorney General and the Commodity Futures Trading Commission (CFTC) have negotiated various agreements with Tether, which has previously faced criticism for its own reserve management. These have to do with concealed related party loans made in the wake of the loss of access to hundreds of millions of dollars held at an unauthorized money transmitter that was allegedly laundering money for Colombian cartels.
CryptoCaster Quick Check:
Concerns about Circle’s SVB deposits, according to Circle’s chief strategy officer Dante Disparte, are “risk reduction to absurdity.”
According to reports, Coinbase was prepared to intervene to support USDC during its de-peg by providing a $3 billion line of credit to support the stablecoin. However, the government’s decision to protect SVB depositors meant that this line of credit was ultimately not required.
Disparte recently stated at the Federal Reserve Bank of Philadelphia Annual Fintech Conference that “one half” of the stablecoin industry is “counterfeiting the US dollar” and he attributed this to “US inaction on policy and regulation.” Tether is the only coin with more than half of the stablecoin market, thus it would seem that this claim is that Tether’s operations are specifically counterfeiting because its reserves are so vastly different from Circle’s.
Disparte has previously questioned whether or not it is acceptable for anyone to “be able to counterfeit US dollars using cryptographic methods.” This is a more direct question than his earlier statements.
Follow GappyCoin on twitter.com/gappycoin and https://www.reddit.com/r/GAPPYCRYPTOCURRENCY/
For the past few years, Circle and Tether have competed for sway in the stablecoin market. In a same vein, both companies have expended money to sway the policy and regulation debate in the US.
While Tether’s market cap has increased over the past few months despite the bear market and rising rate environment, USDC’s has decreased.
We hope you found this article insightful. Before you go, please consider supporting CryptoCaster’s independent journalism.
In the world of media owned by billionaires like Elon Musk, Larry Fink (BlackRock), and Jamie Dimon (JP Morgan Chase), influence over narratives surrounding cryptocurrency and Web3 often reflects their interests. CryptoCaster is different. With no billionaire backers or shareholder obligations, we are committed solely to public interest journalism, covering crypto advancements and institutional changes without profit-driven motives.
Unlike much of mainstream media, which can fall into neutrality traps that obscure the real impacts on retail investors, we’re guided by transparency and integrity. We are unafraid to take a stand in the ongoing struggle against fiat banking dominance and in support of the monetary innovation driven by crypto and Web3. Reporting on issues like FTX, Binance, and Ripple, we bring a bold, unfiltered outsider’s view on global financial disruption—free from the constraints of traditional media narratives.
CryptoCaster remains paywall-free, accessible to everyone, thanks to the support of readers like you. Your contributions keep us independent and help ensure that critical information on the crypto landscape reaches all. If you value our work, please consider supporting us with a one-time contribution starting at just $1 in Bitcoin or Ether, or even monthly if you’re able. Scroll down to find our wallet addresses and help keep CryptoCaster independent and thriving.
Thank you for your support,
Kristin Steinbeck
Editor, CryptoCaster
Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.
Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
CRYPTOCASTER HEATMAP
