Bloomberg, Tether Caught in Battle? Another Revelation: OCC Acting Comptroller States Tether is Under Reserve Review

Bloomberg previously reported that US regulatory agencies are investigating Tether, the issuer of USDT, to clarify whether its top executives are involved in bank fraud. After Tether's denial, Bloomberg further revealed that the Acting Comptroller of the Currency stated that regulatory agencies are reviewing Tether's reserve system.

Tether Fights Back Against Bloomberg's "Rehashed" Report

Tether responded on 7/27, stating that Bloomberg's anonymous sources were making accusations from years ago, seemingly for clickbait, and recycling past statements to package them as news. They mentioned that Tether frequently engages in public dialogue with law enforcement and maintains good relationships with regulatory authorities.

Bloomberg's Counterattack

Stablecoin Project Diem

Bloomberg first mentioned the stablecoin regulatory meeting led by former US Treasury Secretary Yellen and again cited anonymous sources, indicating that the meeting focused on Tether and Facebook's attempted stablecoin Diem.

Regulators are concerned as Facebook has nearly 3 billion active users globally, making widespread adoption likely, which raises concerns.

Tether Reserves

Aside from concerns over Tether's holding of commercial paper - unsecured debt issued for the company's short-term financing needs, Bloomberg also quoted Acting Comptroller of the Currency Michael Hsu of the OCC, saying:

Regulators are reviewing Tether's reserve holdings to see if they are fulfilling their promise at issuance that each token is backed by assets equivalent to one US dollar. Stablecoins look "very much like" money market funds, and regulating this type of money fund has always been a top priority for regulators.

Bloomberg noted that both a Facebook spokesperson and the Diem Association declined to comment, and Tether had not provided any updates in response.