Martin Folb, a cryptocurrency influencer going by the alias MartyParty, believes a recently announced regulatory initiative by Tether would benefit the stablecoin ecosystem. According to Folb, the initiative will bring in the U.S. Stablecoin Act and promote global adoption.
Breaking: @Tether_to public statement to comply with regulators demand to have freezable wallets for security. This is bullish meaning @Tether_to and the US government are working together, this will bring in the US Stable Coin Act and global adoption.#Tether#USDT… pic.twitter.com/E0eCC1skxf
— MartyParty (@martypartymusic) December 9, 2023
On December 9, Tether, the flagship stablecoin provider, announced an initiative it claimed would safeguard the cryptocurrency ecosystem. The latest announcement is a follow-up to an earlier decision by the company to introduce a wallet-freezing policy that would help to combat activities connected with Sanctioned persons on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List.
According to Tether, the new policy is part of efforts to foster a secure and reliable environment for users worldwide. By this implementation, Tether would now offer on the secondary market the Sanctions controls it already enforces for wallets on its platform. The company considers the new policy a proactive effort to enable it to work more closely with global regulators.
Tether’s latest initiative involves taking additional precautions, including freezing wallets previously added to the SDN List. According to the announcement, Tether aims to proactively prevent potential misuse of its native tokens and enhance security measures.
According to Paolo Ardonio, CEO of Tether, the new policy is a strategic decision that aligns with his company’s unwavering commitment to maintaining the highest safety standards for the stablecoin global ecosystem. He believes it would expand their close working relationship with law enforcement agencies and regulators.
Ardonio believes that by executing voluntary wallet address freezing of new additions to the SDN List and freezing previously added addresses, Tether will be able to further strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users.
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