No, Tether is not currently regulated by the U.S. Securities and Exchange Commission (SEC). The SEC has clarified that certain stablecoins, under specific conditions, do not fall under its jurisdiction as securities. However, Tether's USDT may not meet the SEC's criteria due to the nature of its reserves and redemption policies.
Here's a more detailed explanation:
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.The SEC has stated that stablecoins that are fully backed, dollar-pegged, used solely for payments or value transfer, and not marketed as investments, may not be considered securities.
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.While Tether's USDT is a stablecoin, it may not meet the SEC's definition of a "covered stablecoin" because its reserves include assets like Bitcoin and secured loans, and its redemption policies may have limitations.
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.The SEC's guidance specifies that acceptable reserves for stablecoins should not include precious metals or cryptocurrencies.
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.Despite the current clarification, the SEC's stance on stablecoins could evolve, and Tether's USDT may face further scrutiny or regulation in the future, according to Bloomberg.
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.Tether has engaged with the SEC and other regulators to discuss stablecoin regulations and is working on improving transparency and compliance.
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.Thailand's SEC has approved Tether's USDT for trading and payments, demonstrating a different approach to regulating stablecoins.
