Former US Securities and Exchange Commission (SEC) official John Reed Stark has issued a warning about Tether, the world’s largest stablecoin emitter, USDT. In his opinion, Tether could be the next domino to fall, and its promise of transparency and audits may not be enough to prevent that from happening.
Is Tether’s Future In Jeopardy?
Stark, who has 35 years of experience studying markets and financial statements, including 18 years as an attorney in the SEC Enforcement Division, believes that Tether is a “mammoth house of cards” that could collapse at any moment. He argues that the company’s lack of transparency and its opaque relationship with its banking partners create significant risks for investors and the wider financial system.
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In addition, John Reed Stark has called attention to the lack of regulatory constraints on the…
