Tether, the world’s largest stablecoin, has dropped its opposition to a Freedom of Information Act (FOIA) request from CoinDesk, a leading cryptocurrency news outlet. The request seeks information about Tether’s reserves, which have been the subject of much speculation and controversy.
Tether initially opposed the FOIA request, arguing that it would violate the privacy of its customers and reveal sensitive commercial information. However, in a blog post published on June 15, 2023, Tether said that it had decided to drop its opposition in order to “prioritize openness over further time-consuming and unproductive American litigation that distracts from the real issues facing our community.”
Tether’s decision to drop its opposition to the FOIA request is a significant step towards greater transparency for the company. In 2021, Tether agreed to a settlement with the New York Attorney General’s Office that required it to provide quarterly reports on its reserves. However, Tether has been criticized for not providing more detailed information about its reserves, such as the specific assets that they hold.
The FOIA request from CoinDesk could provide more information about Tether’s reserves. However, it is important to note that the request is still pending, and it is possible that Tether could still challenge the release of some or all of the requested information.
Despite the ongoing legal challenges, Tether has said that it remains committed to transparency. The company has said that it plans to continue to provide regular updates on its reserves and to work with regulators to ensure that it complies with all applicable laws and regulations.
Tether’s commitment to transparency is a positive development for the cryptocurrency industry. As the industry continues to grow, it is important for companies to be transparent about their operations. This will help to build trust with investors and users, and it will help to ensure that the industry remains safe and compliant.
© Solana Daily Brief, Inc. All Rights Reserved. This article is for informational purposes only. It is not to be used as legal, tax, investment, financial, or other advice.