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Trump’s Crypto Agenda Could Trigger Tether Meltdown, According to Bloomberg
The election of Donald Trump as the President-elect has raised concerns in financial and regulatory sectors. An analysis by Bloomberg highlights a potential threat to global financial stability if his administration supports the unchecked growth of Tether (USDT), one of the most influential companies in the crypto industry.
Tether, whose USDT stablecoin has seen a staggering transaction volume exceeding $4.6 trillion in November 2024 alone, is facing criticism for its opaque practices and connections to illicit activities. Despite these issues, USDT remains the reference stablecoin, with many cryptocurrency exchanges using it as a reserve asset.
The main concern lies in Tether’s unchecked growth, which has the potential to destabilize the traditional financial system. The crypto market’s integration with Wall Street firms like Cantor Fitzgerald, which owns a stake in Tether, exacerbates these risks. Bloomberg warns that if USDT continues to expand without adequate regulation, it could become a conduit for criminal activities and an even greater threat to global financial stability.
Furthermore, the Trump administration has considered introducing a Bitcoin reserve, a move that could inflate the cryptocurrency’s value and benefit early investors, potentially leading to adverse economic consequences. The nomination of Howard Lutnick as Commerce Secretary, with ties to Tether through his company Cantor Fitzgerald, only adds fuel to these concerns.
As President-elect Donald Trump takes office, it is crucial for regulators and financial institutions to address the regulatory vacuum surrounding Tether’s growth.
Source: crypto-economy.com
