Tether s circulating supply has increased to $76 billion as the team minted additional $3 billion worth of the asset during the last 2 weeks, and most importantly $1 billion of those new coins were minted on the Tron Network on December 4.
Tether mints a new coin that faces scrutiny about its backing.
According to available data,USDT's new circulating supply of $76 billion is less than that of its closed rival, USD Coin USDC This new mint came after market experts believe that the token has less cash to back its reserve, as there are reports that only a small portion of the Stable coin is fully backed by dollar reserves. A report from Financial Times revealed that Tether only has 2.9% of its supply in Dollar reserves.
Even though Tether has stepped up its transparency efforts, it still faces scrutiny from regulators and the community at large. Interest over its cash reserves and other backings would increase as regulators became more interested in the stable coin market. The Commodity Futures Trading Commission fined Tether $41 million for its lack of transparency.
Hindenburg Research offers up to $1 million for information regarding the details of the backing of Tether.
The U.S. Senate Banking Committee Chair Sherrod Brown wrote to the CEO of the stablecoin company, Jean-Louis van Veld, about concerns over the stablecoin and its operations as part of its concerns over its operations. Tether has vowed to remain cooperative with global lawmakers on issues related to stable coin.
Other stable coins have vowed to take transparency and accountability measures. In an announcement earlier in the year, USDC issuer Circle said it would take such measures in an announcement that was subpoenaed by the Securities and Exchange Commission.