Is Tether legal?

Yes, Tether is legal. It is a fiat-backed stablecoin pegged to the U.S. dollar and is widely used for cryptocurrency trading. The U.S. Department of Justice has concluded an investigation into support for Tether, and the CFTC designated it a commodity, providing regulatory oversight. However, users should be wary when using Tether as this may involve illegal activities such as money laundering or terrorist financing.

Tether legality

Short answer: Yes.

Detailed expansion:

Tether is a stable currency backed by legal currency and pegged to the US dollar. It is issued by a company called Tether Limited, which claims to hold in its reserves an amount of U.S. dollars equal to the amount of Tether in circulation.

Tether has faced some controversy over its legality as it has been accused of fraud and failure to comply with anti-money laundering laws. However, the U.S. Department of Justice concluded an investigation into Tether Limited in 2021 with a $41 million fine, which revealed that Tether Limited did not make false representations about its support for Tether.

Since then, the legitimacy of Tether has been further consolidated. It is widely used in cryptocurrency trading and accepted by some institutional investors. Additionally, the U.S. Commodity Futures Trading Commission (CFTC) has designated Tether a commodity, which provides additional regulatory oversight.

It needs to be emphasized that although Tether itself is legal, it may be used for illegal activities, such as money laundering or terrorist financing. Therefore, it is important to remain vigilant and understand the potential risks when using Tether.

The above is the detailed content of Is Tether legal?. For more information, please follow other related articles on the PHP Chinese website!