Binance’s Relationship with USDT and the Uncertainty of Cryptocurrency Regulation in the US

02/17/2023 12:55 • Digital Disruptors • 79 views

According to the news, Gabor Gurbacs, director of digital asset strategy of VanEck, an investment management company in New York, said on social media that some of the most liquid currency pairs (excluding Binance. US) on Binance were traded in the form of USDT. It is wise for CZ to support USDT. Compared with the stable currency issued by the United States, Tether’s attention to emerging markets may be considered less risky by global Binance users. A win-win situation for Binance users. The regulatory situation of cryptocurrency business in the United States is chaotic, unfriendly and unreliable. No wonder people, companies and exchanges will stay away from American products. Not long ago, owning/using American products was a pride, but today it is more like a responsibility.

VanEck Digital Asset Strategy Director: The regulatory situation of cryptocurrency in the United States is chaotic

Analysis based on this information:

The statement made by Gabor Gurbacs, director of digital asset strategy of VanEck, regarding the currency pairs traded on Binance being USDT-based has raised concerns about the stability of the cryptocurrency market, the role of Binance in it, and the uncertainty of cryptocurrency regulation in the United States. Binance has become one of the world’s leading cryptocurrency exchange platforms, and Gurbacs’ comments indicate that the use of USDT may be central to its operations. This has necessitated the support of USDT by Binance CEO, Changpeng Zhao (CZ), due to its perceived safety compared to the stable currency issued by the US government.

Gurbacs also noted that Tether’s focus on emerging markets may be less risky for global Binance users, keeping in mind the regulatory uncertainties in the US, which have brought about some caution regarding the use of American products. While the US may have been a safe haven for international investors seeking stable investment opportunities in the past, the chaotic, unfriendly and unreliable nature of the cryptocurrency regulatory landscape in the US has made investors and businesses wary. As such, owning or using products from the US is now seen as a responsibility rather than a pride.

In light of Binance’s prominent role in the cryptocurrency exchange market and the uncertainty of cryptocurrency regulation in the US, the use of USDT on Binance may prove safer and more stable than currency pairs based on US fiat. However, this raises concerns about the stability of the cryptocurrency market, with its reliance on Tether’s USDT, which has faced its share of controversies, including allegations of not being fully backed by USD reserves. It is essential to note that a lack of regulatory oversight leaves this issue in murky waters.

In summary, Gurbacs’ comments suggest that Binance uses USDT-based pairs due to the perceived safety of Tether’s attention on emerging markets compared to that of the government-issued US stable currency. Nevertheless, the lack of regulation and oversight in the cryptocurrency market could be a reason to worry about the use of cryptocurrencies, including USDT. The title of the message might imply a hidden agenda or a political message, but the context is merely describing the current state of the cryptocurrency market’s leading players and adapting to it.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/02/17/binances-relationship-with-usdt-and-the-uncertainty-of-cryptocurrency-regulation-in-the-us/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.