By announcing yourself a few days ago the SEC’s intention to sue Ripple, it was hard to imagine that XRP would suffer such a huge drop. While many partners dissociate themselves from society and that the asset is being boycotted, another situation worries the community. She wonders which asset will be the next to be pinned by the SEC in its witch hunt. To this concern, some specialists point to Tether as the next target.
An asset already in the sights of the Attorney General of New York
Following the case concerning the loss of $ 850 million in Bitfinex customer funds, Tether had been the subject ofproceedings initiated by the New York state attorney general. While this case has since been forgotten by the crypto space, it is good to remember that she has not yet had her epilogue. To this must be added the results of the investigations carried out by John M. Griffin on the amount of stablecoin that is in circulation. It turns out that this one is dictated by demand and not supply. A situation that could naturally lead the SEC to look into Tether’s case.
Added to this is the fact that USDT is suspected of having played a major role in the 2017 bull run and that he has still not provided substantial evidence that it is secured by bank dollars. Taking these and more into account, it makes perfect sense to fear the worst for stablecoin. Judging from the losses suffered by XRP, it could also happen a boycott of the USDT on exchanges and its liquidation by users.
SEC proceeding against USDT would benefit USDC
With the expectation that this scenario may materialize in the near future, analysts have already identified the asset that would benefit the most – another stablecoin. Circle’s USDC is in the most regulated stablecoin with the most affinity with the government. With the exception of USDT, this is also the stablecoin with the largest market capitalization.
He has established important partnerships in record time with numerous government agencies and structures in the crypto space. Added to this is its constant search for legal means to promote the adoption of stablecoins in the traditional financial market. With an SEC proceeding, it is therefore a safe bet that we will see a slow exodus of USDT holders to USDC.
Despite all these elements, it is important to clarify that these are only forecasts made by analysts and not a real will of the SEC. She has not yet released any clues about a future procedure and is dedicated to the battle that will soon oppose Ripple in court.