Jim Cramer News: In an interview with The Street, host of CNBC’s Mad Money, Jim Cramer expressed his concerns about Tether’s privacy regarding its commercial assets that support the value of USDT.
According to the company’s May 13 reserve breakdown, 75 percent of the funds backing the USDT stablecoin consist of cash or cash equivalents, short-term deposits and undisclosed papers. 50 percent of these assets consist of commercial papers. As of March 31, the reserve breakdown alone comprised only 3.87 percent of all USDT-backed assets.
This isn’t the first time Cramer has expressed disappointment with Tether’s funding disclosure policy. Cramer happily endorsed Powell’s concern about Tether, the 16th Chairman of the Federal Reserve, on Twitter:
Powell concerned about Tether and commercial paper.. i do not blame him!
— Jim Cramer (@jimcramer) July 14, 2021
Jim Cramer’s biggest concern is the actual documents Tether holds. It is known that the value of commercial papers owned by Tether is close to 60 billion dollars. But due to the lack of transparency, the CNBC host expresses concern about the nature of these assets and hopes they are legal.
The Mad Money server also came up with the idea that SEC chairman Gary Gensler had the right to ask Tether if commercial papers were securities. Cramer also suggested that there is a general belief that most of Tether’s commercial papers may be Chinese bank papers.
How the recent cold trade war between the USA and China will affect this “war” as the possibility of the existence of USDT, the most viable cryptocurrency indexed to the US currency USD, will consist of Chinese bank papers, and the potential actions of the US government, which is already insisting on imposing sanctions on stablecoins. one of the hot questions in the minds of investors.