ICYMI: Senate report says Iran relied on Tether's USDT to bypass sanctions, WSJ reports

The useful part

Tether's roughly 60% share of the stablecoin market means any move by US officials to force faster freezes could matter for crypto liquidity more than for the token's peg. --- Senate Democrats say Tether's dollar-pegged token has become a core sanctions-dodging tool for Iran, although blockchain data suggests Tehran's reliance may be easing. The report analysed around 850 wallets sanctioned by the US and Israel over Iran links and found 84% transacted exclusively, or near exclusively, in USDT.

How it works

• Blockchain analytics data suggests Iran may be rethinking its use: USDT's share of transactions acr...
• The oil angle is the one to watch: the report ties Iran's use of the token to continued oil sales to allies such as China, so tighter enforcement on those payment channels could add to supply friction at a...
• Tether accounts for about 60% of the stablecoin market by value, and the report criticises the company for not quickly freezing USDT in sanctioned wallets, despite having the ability to do so.

Details worth keeping

Tether's $84 million question: whose money did the US actually seize? Summary: A report released Monday by Senate Democrats on the Permanent Subcommittee on Investigations says Iran has relied on Tether's USDT stablecoin to bypass US sanctions and fund proxy groups such as Hezbollah, according to a copy viewed by the Wall Street Journal. The panel referred the report to the Justice and Treasury departments.