An ex-chairman of Commodity Futures Trading Commission is calling more rules of cryptocurrencies or stablecoins created to be attached to the other assets such as fiat money.
Timothy Massad, the person who led this commission for much of Obama admin’s second term, told Jim Cramer of the CNBC group that the investors will benefit from transparency with regards to the settlement between Tether Limited and the NY attorney general office in February.
Notably, Tether Limited issues tether, which is the most significant stablecoin and the 3rd most valued cryptocurrency after ethereum and bitcoin.
As per Massad, a much better framework is needed to regulate tether as well as other stablecoins.
Tether and an associated company called Bitfinex have agreed to a settlement worth $18.5mn with the NY prosecutors to end an investigation into accusations that the companies moved money for covering a loss of around $850mn.
The attorney general has alleged that the company has misrepresented its status of reserves in 2018-19. While both the companies have refused the allegations, Tether had been ordered to provide its quarterly disclosures on reserves.
The company submitted its 1st report in March, which revealed a few opaque utilizations of money invested into coins. That has prompted Massad to seek more disclosure on the matter.