Regulators urge Tether to prove the value behind its stablecoin

As governments continue to increase transparency, USDT issuer Tether faces stricter regulatory scrutiny worldwide. The U.S. Securities and Exchange Commission (SEC) is investigating Tether and Bitfinex and issuing subpoenas to provide financial documents; at the same time, EU MiCA regulations will also implement strict reserve and regulatory rules. Tether has increased cash and U.S. Treasury reserves, thereby reducing exposure to commercial paper. Despite regulatory pressures, USDT is still widely used, especially in emerging markets. Compliance and adaptability to an evolving framework are crucial to the stability of Tether's future.