In an unprecedented move, Tether [USDT] defied Office of Foreign Assets Control (OFAC) sanctions. The organization decided to go against OFAC on the grounds that the latter does not indicate “that a stablecoin issuer should freeze secondary market addresses”.
So Tether held firm and came out in favor of not freezing sanctioned Tornado Cash addresses. The organization even took to Twitter and posted a Tweeter to describe his thoughts behind the decision-making.
Tether stands firm in its decision not to freeze Tornado cash addresses, awaits instructions from law enforcement https://t.co/zpsI9lKLlf
– Tether (@Tether_to) August 24, 2022
Why such a commotion
In the statement released by Tether, the organization highlighted that it has complied with various regulatory and law enforcement officials. Moreover, they were also extremely punctual while providing solutions and information.
Tether also said that no law enforcement agency has approached the former to ask it to freeze the assets of any secondary market address.
The Tether team went on to state,
“No U.S. law enforcement agency or regulator has made such a request despite our near-daily contact with U.S. law enforcement agencies whose requests always provide specific details.”
The organization has justified its position and made sure people realize that the company complies with all regulatory agencies.
However, Tether also said freezing addresses could increase volatility and uncertainty in the crypto market.
The company cited examples of where law enforcement specifically asked them not to freeze certain people’s addresses. These people would have been suspected of criminal behavior.
The Tether team further criticized the USDC’s decision to freeze addresses and called the decision premature.
Well, this move by Tether got a positive response from social media with several people applauding Tether’s stance.
He also shed some light on their USDT stablecoin. He has been the recipient of some positive chatter on social media.
But this event is not the only reason why USDT has gained popularity in recent days.
Binance, the cryptocurrency exchange, was to remove the USDT token from the list. But this has delayed deregistration for the time being.
Moreover, many people perceived this as a bullish sign. Additionally, the event restored confidence in stablecoins. Binance, however, did not give any specific reason for postponing the delisting.