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Senator Toomey Accepting Blockchain Proposals while the OSC Prohibits Tether – Regulation Weekly





Tether Prohibited

Stablecoins are an important cog in the digital asset sector.  By providing investors with a stable means of storing and transferring value, multiple offerings like USDT and USDC have become common place in most portfolios.

While USDC has seen its market-share consistently rising over the past year, USDT has seen its grasp on the top stablecoin spot become increasingly tenuous.  Although reasons for this are varied, one example is the recent ruling of the Ontario Securities Commission (OSC) to prohibit the asset for trading on multiple Canadian platforms.

Relating specifically to Coinberry, the popular exchange was granted approval to continue offering clients access to assets such as Bitcoin, Ether, Bitcoin Cash, and Litecoin.  The only asset listed as prohibited is USDT (Tether).

While the reasoning for this is not entirely clear, some have speculated that this decision was made partly due to past events which transpired between USDT parent company, Bitfinex, and the New York Department of Financial Services (NYDFS).

Simply put – the OSC currently views Tether as being too high-risk of an asset to grant its approval.

Hester Offers Chance for Feedback

For the most part, the general public does not get a lot of say in how markets are regulated.  There are instances however where feedback is sought by those making the rules.  In a recent twitter post, SEC Commissioner Hester Peirce highlighted such an opportunity, encouraging crypto enthusiasts to voice their opinions.

This opportunity comes via Senator Pat Toomey, who recently shared a positive stance towards cryptocurrencies, and his belief in a need for 2-way communication between the public and legislators.

“Rather than trying to ignore or suppress cryptocurrency and related technologies, regulators and legislators alike need to recognize that open, public networks are here to stay. Our laws and regulations must adapt to these developments…Not only might cryptocurrency and blockchain technologies be as revolutionary as the internet, they also have the potential to build wealth and financial independence for individuals who are empowered to engage in financial transactions directly with each other, free from oft-costly middlemen. That’s why it’s important Congress gets this right and ensures the United States remains at the forefront of cryptocurrency and fintech innovation. I am hopeful the broad array of legislative proposals I receive will help in crafting thoughtful legislation.”

For those interested in sharing their proposals on what legislative language should look like, surrounding the regulation of blockchain based endeavours, submission must occur before September 27th.  These proposals may encompass anything from stablecoins, to cryptocurrency exchanges, DeFi, and more.