Top stablecoin issuer fined $41M over reserve claims

The Commodity Futures Trading Commission fined Tether, the largest stablecoin issuer, $41 million for misleading claims that its U.S. dollar token was fully backed by reserves.

Details: The CFTC said Tether’s stablecoin was fully backed for only one-quarter of a 26-month period between 2016 and 2018. The agency also announced a $1.5 million settlement with Bitfinex for engaging in illegal retail commodity transactions.

Report: A Financial Stability Oversight Council meeting scheduled for today is set to include an update on a President’s Working Group on Financial Markets report on stablecoins. The report is expected to focus on consumer and investor protection, preventing financial crimes, systemic integrity, and financial stability.

More: Recent ICBA blog posts detail growing stablecoin risks to consumers and the financial system, how policymakers are responding, and what decentralized finance means for community banks.