TL;DR
- The relationship between Tether (USDT) and the Trump administration has raised concerns about its impact on global financial stability, according to Bloomberg.
- Despite controversies and links to illicit activities, USDT remains the most widely used stablecoin, with a transaction volume exceeding $4.6 trillion in November 2024.
- The connection between the stablecoin and Wall Street companies increases the risk of it becoming a threat to the traditional financial system.
The relationship between Tether’s stablecoin USDT and the administration of president-elect Donald Trump has raised concerns in financial and regulatory sectors. According to an analysis by Bloomberg, this combination could threaten global financial stability.
Tether is one of the most important companies in the crypto industry and market. USDT has been involved in several controversies due to opaque practices and its links to illicit activities. However, the cryptocurrency has managed to maintain its position as the reference stablecoin, with a transaction volume exceeding $4.6 trillion in November 2024 alone.
Concerns about Tether’s (USDT) Reputation
The main concern lies in the unchecked growth of USDT, which has raised worries about its impact on the traditional financial system. As Tether becomes more connected with Wall Street firms like Cantor Fitzgerald, which owns a stake in the stablecoin, the risk increases that a crisis in the crypto market could spread to global finances. There have also been established connections between Tether’s stablecoin and criminal actors, such as North Korean hackers, Russian arms traffickers, and terrorist groups, which has attracted the attention of federal authorities.
President-elect Donald Trump, who has already made his support for cryptocurrencies clear, has promoted a favorable policy towards the crypto market. The nomination of Howard Lutnick as Commerce Secretary, who has ties to Tether through his company Cantor Fitzgerald, has exacerbated concerns.
Links with Wall Street
Lutnick has been a staunch supporter of USDT and its integration with Wall Street, a situation that could amplify the latent risks. Bloomberg warns that if USDT continues to expand without adequate regulation, it could become a channel for crime and an even greater threat to global financial stability.
Additionally, it is mentioned that the Trump administration has considered plans for a Bitcoin reserve, a measure that, according to Bloomberg, could inflate the value of the cryptocurrency and benefit early holders, potentially leading to adverse economic consequences.
