News View Non-AMP

Tether and Binance in the Spotlight: A Deep Dive into Crypto’s Regulatory Challenges

Published by
Qadir AK

In a recent interview with Tony of Thinking Crypto, Ron Hammond from the Blockchain Association shed light on the evolving dynamics between Binance, Tether, and regulatory authorities in Washington, DC. The conversation primarily focused on the recent settlement between Binance and the Department of Justice (DOJ), and the ongoing concerns surrounding Tether.

Binance’s Settlement with DOJ: A Turning Point?

Hammond highlighted that historically, Binance had faced reputation issues in DC, leading to heightened scrutiny. This was exemplified by a letter from politicians French Hill and Senator Cynthia Lummis to the DOJ, specifically addressing concerns about Binance and Tether. However, a significant development has occurred since, with Binance settling with the DOJ, a move marked by the stepping down of Binance CEO, Changpeng Zhao (CZ).

The discussion then pivoted to whether this settlement addresses all underlying issues. Hammond spoke about the complexity of the situation, emphasizing the DOJ’s concerns about money laundering and sanctions violations. He noted that these challenges are not unique to Binance but are also pertinent to Tether.

Tether’s Ongoing Challenges and Reputation

Tether, according to Hammond, has been viewed negatively in DC, primarily due to issues related to audits and reserves. Despite recent efforts by Tether to address these concerns, doubts persist, especially regarding the use of platforms like Tron and Binance for financing malicious activities.

Hammond quoted, “Tether was always, at least in DC, viewed pretty negatively as well, and I’d say that those are the last kind of two big holdups right now. For Tether, at least, the largest concerns usually start with the issues of audits and reserves. For a while, there was unclear about what’s making the reserves at Tether.”

The interview also highlighted concerns from industry-friendly Republicans about the negative connotations associated with Tether. Despite efforts to rectify past mistakes, Tether remains under scrutiny, especially in the wake of the Binance settlement. Additionally, the conversation touched upon the critical importance of stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) practices, areas where Binance had previously faced charges from the DOJ for lax enforcement.

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Recent Posts

Best Cryptocurrencies for June 2025: Ripple (XRP), Dogecoin (DOGE), Mutuum Finance (MUTM)

As market sentiment shifts and fresh momentum builds across digital assets, June 2025 presents a…

June 2, 2025

Live Coin Watch Alert: Bitcoin Solaris’s 21M Fixed Supply Creates Your Second Chance at Bitcoin’s Growth Path

When Bitcoin first emerged, its fixed 21 million supply was mocked. Today, that scarcity has…

June 2, 2025

Singapore Cracks Down on Unlicensed Crypto Firms with Strict New Rules

Singapore’s financial authority announces that unlicensed crypto firms operating overseas after June 30 will be…

June 2, 2025

Can U.S. Buy More Bitcoin? Here’s What David Sacks Revealed

On May 27, 2025, US President’s crypto czar, David Sacks, says there is a pathway…

June 2, 2025

After Monero Surge, Wall Street Ponke Gains Momentum, maybe Under $1?

Hackers used Monero to move stolen Bitcoin, pushing XMR up 24 percent to $269. But…

June 2, 2025

Pakistan Allocates 2,000MW for Bitcoin Mining and AI: A Digital Revolution

Pakistan has allocated 2,000 megawatts (MW) of electricity to fuel Bitcoin mining and artificial intelligence…

June 2, 2025