Tether (USDT) May Be in U.S. Treasury Sights

without explicitly naming the tether (USDT) As a leader in the sector, a senior U.S. Treasury official on Wednesday criticized the dangers of non-U.S. stablecoin issuers using dollar backing, arguing that use by bad actors needs to be addressed.

Deputy Treasury Secretary Wally Adeyemo issued a broad warning about illicit finance in the crypto industry in a speech scheduled for a Blockchain Association event in Washington. He turned some of that attention to stablecoins. “We cannot give dollar-backed stablecoin providers outside the United States the privilege of using our currency without taking responsibility for putting procedures in place to prevent the misuse of our platform by terrorists,” he said in prepared remarks. said.

Adeyemo noted that in his previous talk at CoinDesk’s Consensus 2022, he highlighted that cryptocurrencies are a “tremendous opportunity” for innovation, adding that “the industry is becoming increasingly vulnerable to transnational criminal organizations, terrorists, and organized crime.” It also made clear the importance of proactively taking measures to prevent the use of digital assets by individuals. rogue nation. “However, that opening has not been fully accepted by the industry, he said today.

“While some companies are heeding our calls and taking steps to stop illegal activities, the failure of too many companies, large and small, to act is a national challenge. It represents a clear and immediate risk to national security,” Adeyemo said.

He cited a recent settlement with Binance by U.S. authorities, alleging that the company was used by terrorists, drug traffickers, and child sex abusers.

“I am concerned about those within the digital asset industry who believe they are above the law, those who willfully ignore the law, and those who support criminals, terrorists and rogue states. “We want to appeal directly to the people who are promoting these services and services,” he said. He said. “My message is simple: We will find you and we will hold you accountable.”

He suggested that the crypto sector could follow the example of the US banking industry and establish an exchange of information about bad actors.

Also on Wednesday, the Treasury Department sanctioned another cryptocurrency mixing service, Sinbad, for supporting transactions related to the North Korean hack.

Updated (November 29, 2023, 16:47 UTC): Adds more comments from Adeyemo.

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