New York Court Orders Tether to Comply with FOIL Request
Tether’s Attempt to Block FOIL Request Dismissed
A New York court has dismissed an attempt by Tether, the world’s largest stablecoin issuer, to block CoinDesk’s Freedom of Information Law (FOIL) request for documents related to its reserves.
Victory for Transparency in the Crypto Industry
The FOIL request was filed by CoinDesk in March 2021 and sought records related to Tether’s backing of its stablecoin USDT. The cryptocurrency news outlet has argued that these documents must shed light on the company’s activities and operations.
This ruling is a significant victory for transparency in the crypto industry and will allow CoinDesk to access records related to Tether’s reserves. This could help clarify how much money is backing USDT tokens and other details about how Tether operates.
CoinDesk’s Response to the Ruling
CoinDesk editor-in-chief Pete Rizzo commented on the ruling: “We are pleased with this decision from the court, which affirms our right to access public information under FOIL laws.” He added that this ruling is essential to greater transparency in cryptocurrency markets.
Importance of the FOIL Request
Tether’s stablecoin USDT has been under scrutiny in recent years, with concerns raised about the extent to which reserves of traditional currencies back it. The FOIL request filed by CoinDesk seeks to shed light on Tether’s accounts and operations, potentially providing greater clarity around the extent to which reserves back USDT. This could be significant for investors, who may be more likely to invest in USDT if they have greater confidence in its backing.
It is unclear when CoinDesk will receive documents related to Tether’s reserves or whether they can obtain them. However, this ruling sets a positive precedent for future attempts at getting information about crypto companies’ operations and activities.
Overall, this ruling is a significant victory for transparency in the crypto industry and could have important implications for the future of stablecoins. As more investors and traders turn to crypto to diversify their portfolios, it is becoming increasingly important for companies like T.
