Tether was largely silent on why it wanted to conduct this swap, a move that has sparked some assumptions in the community. While Tether has conducted these chain swaps for years, it still reassured its community that the total supply of the USDT stablecoin will not decline.
USDT remains the industry's first and biggest stablecoin, with its market capitalization pegged at $83.37 billion. The usage of the stablecoin has skyrocketed over the past few years, and within that time, Tether has made concerted efforts to shift its reserve portfolios in a bid to drive more trust in its ecosystem. Of the hypothesis being shared as to why the USDT is being swapped, the most logical remains the move to rebalance the liquidity base of USDT on Ethereum by taking from the region of surplus to the region of scarcity.
Tether has been deemed a very controversial stablecoin issuer, but luckily, the on-chain swaps take place online and can easily be tracked and verified. Tether has made headlines, for a positive reason, as it revealed it recovered about $20 billion in losses earlier this month.The stablecoin issuer also has a functional partnership with Xapo Bank, which adopted the Tether payment rail in place of SWIFT.
Gensler keeps calling many cryptos unregistered securities; however, he refuses to comment on the status of many other cryptos, such as Ethereum. This is puzzling the crypto community, which is angry about the SEC chair and the regulatory policy against crypto.
Cohen admitted that there seems to be an "element of bad luck and randomness" when it comes to the SEC picking on a new token to call a security. He states that while 10 or 12 tokens get mentioned, a hundred others may as well have also been claimed to be securities. He believes that this randomness coming from the regulator is "rather unfair."
Cohen believes that these actions by the SEC are affecting not only businesses but also real people who are involved with them. "It's having a real impact on real people and real businesses," he stated.
According to him, "the SEC's actions are raising a cloud of suspicion where one may not be warranted." Still, he commented that when the regulator calls a token a security, this implies that "something wrong happened" to it. Cohen believes that the SEC may never come up with the final rule as to what can be classified as a security and what cannot.
