The Commodity Futures Trading Commission (CFTC) fined Bitfinex and Tether more than $42 million on allegations that the USDT stablecoin was not fully backed at all times and that Bitfinex violated a previous agency order. The federal commodities regulator settled charges with the sibling crypto companies on Friday, barring both firms from “any further violations of the Commodity Exchange Act (CEA) and CFTC regulations.” According to a CFTC press release, Tether’s stablecoin was fully backed by reserves for only one-quarter of the time over a 26-month period between 2016 and 2018.
It might well be history: On July 28, 2021, Rep. Ted Budd (R-N.C.) headlined a Q&A session with the MakerDAO community – perhaps the first-ever meeting between a decentralized autonomous organization (DAO) and a sitting U.S. congressman. At the end of the MakerDAO event, Budd even issued a mandate for Maker fans to spread the good word about decentralized finance (DeFi) throughout the halls of Congress: He called on the DAO to “build on islands of health and strength” and to “go where your message is heard.” The same one who organized the Budd Q&A, in fact.
During market downturns, coin-margined longs get liquidated relatively quickly.