At a Blockchain Association event in Washington, Deputy Treasury Secretary Wally Adeyemo issued a warning about the potential misuse of stablecoins, particularly those backed by the US dollar but operating outside the US.
While he did not specifically mention Tether (USDT), his remarks were widely interpreted in that context. Adeyemo emphasized the critical importance of preventing these stablecoin platforms from being used for terrorist purposes.
Adeyemo expressed dissatisfaction with the crypto industry, citing the continued use of digital currencies by criminals and terrorists.
He emphasized the importance of the industry taking proactive measures to prevent misuse, especially in the case of stablecoins tied to the US dollar but operating globally.
The inaction of the crypto industry, according to the Deputy Treasury Secretary, poses national security risks.
While not naming specific platforms, Adeyemo cited Binance as an example of a platform used by terrorists and illicit drug dealers.
Adeyemo issued a stern warning to companies engaging in illegal cryptocurrency activities, emphasizing that they would be held accountable.
He urged the crypto industry to take a more collaborative approach, drawing parallels with the practice of sharing information in the US banking system.
As the cryptocurrency industry faces increased regulatory scrutiny, Adeyemo’s remarks indicate a growing focus on stablecoins and their potential misuse.
The call for responsible crypto practices aligns with ongoing efforts to create a framework that balances innovation with security and compliance.
Collaboration, transparency, and accountability are expected to play critical roles in shaping the industry’s future trajectory as it navigates these challenges.