Tether Is Backed by Nearly 50% Commercial Paper
Tether has released an assurance report that provides a breakdown of the company’s consolidated assets on June 30, that shows that its $62.7 billion outstanding USDT stablecoin were fully backed. The report was conducted by Moore Cayman, a Cayman Islands-based auditor.
Tether’s latest attestation report provides much more detail on the composition of its assets, including its certificates of deposit and commercial paper (most of which is rated A-1 or A-2). The majority of these holdings (66%) had a maturity of 91–365 days. Also, its allocation to Treasury Bills has grown to around 24% from the 3% three months ago. It’s very well footnoted, too.
Unchanged crypto tax bill will be put to a vote on Tuesday
Senate talks over the controversial cryptocurrency tax provisions to the U.S. infrastructure bill stalled over the weekend, so an unamended version of the bill may be put to a vote on Tuesday. However, on Monday, Senators Cynthia Lummis and Pat Toomey announced a compromise on the contentious crypto-related tax provisions. But unless the Senate can achieve unanimous consent on the compromise before the final vote on Tuesday, the unamended bill will be put to a vote on Tuesday, although the legislation would still need to clear the House, giving further opportunity for revisions. Stay tuned!
Angela Walch: “The reason it’s so difficult to come up with an amendment that includes crypto exchanges and excludes miners from the definition of ‘broker’ is that both parties do transfer digital assets for third parties in exchange for payment. In order to [do that] you need to articulate a policy rationale for why their behavior is different, and then you can write the language. There are reasons why they are the same and why they are different. Congress needs those comparisons to be put on the table so that it can weigh them, and decide what to do.”
Circle plans to file to become a bank
Circle, the fintech company behind the USDC stablecoin, intends to become a US Federally-chartered national full-reserve commercial bank, according to its S-4 special-purpose acquisition company (SPAC) filing with the U.S. Securities and Exchange Commission. The firm said that a banking framework could reduce the risks around its business, including its reliance on third-party payment systems.
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