wellington said:
There's so many issues with this it's unbelievable
Tether is a Eurodollar equivalent but tokenized
It issues UsDT which is backed by liens, debt, assets etc much like the 400 trillion dollar ledger based Eurodollar market that exists outside of the US control, at this time they hold TBills previously it was corporate debt or loans from South America, China, Europe, US etc which is very much how the Eurodollar market is - collateral > lend into existence or release funds in euro, yuan, yen etc but payable in $ or priced in $ payable in euro, yuan, yen etc.
You don't see the FBI, Treasury etc up private enterprises or non US banks arses outside of the US in the Eurodollar market.
The reason this is wrong is the following - 1 above, 2 the US has to date not defined what a security is whereas every country except Canada, Israel, Taiwan is leaning to the fact that all tokens unless inherently equity are not securities but either payment tokens or utility commodities.
Moving on”¦ this is is the issue - if it is a security then it is a unregistered security and by default the company that issued it is violating US laws because either they have vendors in the US, banked through USD or have staff or customers or token holders in the US thus it is illicit finance.
Now why does that matter? The vast bulk of the crypto space either utilized Binance for personal or commercial and hold their wealth predominantly in x token but also USDT.
”¦ illicit finance”¦. FBI + Secret Service have access to Binance data and now Tether = how do you close something down like crypto?
Mass freeze
Is there extraterritorial overreach? Yes
Is there claims of criminal acts based on US law? Yes
Now they can't do the same with USDC as circle is domestic and it all has to go through the courts - law and that's why there is less freezing on USDC”¦
Binance signed away their own and their users rights
Tether has done the same
Either is not protected by the rule of law in the US because both have violated it somewhere.
Circle on the other hand is because they can make a lot of noise about overreach hence not a shrug about them banking Justin Sun - he was innocent until proven guilty was their statement in a manner of words”¦
Tether like Binance can't do that - everyone is guilty till proven innocent (their users) and their users cant defend themselves when asset seizures occur.
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