The crypto market has become extremely diverse in terms of providing access to all these digital assets to invest in, not only for institutional investors and traders but also for the common man. There are all sorts of digital assets out there that you can pour your money in; the first ones are crypto tokens, the next we have non-fungible tokens, the Bitcoin futures ETF approved by the Securities and Exchange Commission, and of course the stable coins or CBDCs.

With all these different digital products available for investment, things might start to get a little shady and grey around the edges for a common investor, and the same is true for the state trying to get an understanding of how these things operate or trying to regulate them. Many new stablecoins have come out over the years, and presently Tether stablecoin has hit the big news as the US Senate Banking Committee chairman Sherrod Brown asks the CEO of Tether holdings, Jean-Louis van de Velde limited to provide validated information around Tether stablecoin.

Stablecoins Propose Significant Risks

Stablecoins threaten the very aspect of investor protection and market integrity, and that is why these should not be allowed to continue without a regulatory oversight on them at all times. The Tether stablecoin has made the headlines because it is being used in multiple digital transactions, and its adoption rate also continues to increase; that is why it has become imperative that a regulatory framework is built around its use and exposure to the stablecoin is getting from the market and people using it.

Due to a certain boom in production and adoption of stablecoins and various other digital products, it becomes very difficult for the regulatory authorities to be able to make it clear to the end investor regarding the rules and the risks associated with a dedicated digital asset. That is why they are requesting Tether holdings to facilitate them with accurate information on its stablecoin so it can be properly regulated and end investors could be filled in accordingly.