In a climate of increasing scrutiny over the role of Crypto in the financial sphere, a recent demand led by Senator Cynthia Lummis against Binance and Tether, deserve a deeper look and analysis. The trigger for the news is based on the claim that these platforms have been involved in financing terrorism for Hamas.
These allegations have been presented in a letter sent to the United States Department of Justice (DOJ) by Senator Cynthia Lummis and Representative French Hill.
When it comes to illicit finance, crypto is not the enemy – bad actors are.
I sent a letter asking DOJ to finish its investigation and consider criminal charges against Binance and Tether after reports they served as intermediaries for Hamas and engaged in illicit activities. pic.twitter.com/M3KGNFkpWc
— Senator Cynthia Lummis (@SenLummis) October 26, 2023
Lawmakers are relying on reports suggesting that Binance and Tether have served as intermediaries for the terrorist group Hamas, which has raised questions about the logic used to assess the companies’ responsibility in these matters.
Following this proposed reasoning, should we blame credit card companies, such as Mastercard and American Express, when someone makes a gun purchase with their cards and then commits a crime?
The allegations raised in the letter raise questions about the logic used to assess companies’ liability in these situations.
A New US Demand Against Binance & Tether
This would not be the first time that important actors in the United States decide to file a demand against the exchange or the Stablecoin company USDT, previously there were allegations for other cases from the USA to both firms.
Binance currently holds the top position as the world’s leading exchange in terms of trading volumes and overall performance metrics. The company operates from various jurisdictions, establishing a strong global presence while consistently emphasizing security and transparency for its users.
Throughout its journey, Binance has encountered several challenges, yet the exchange has actively cooperated with authorities and promptly taken steps to address any suspicious activities on its platforms.
On the other hand, Tether has played a pivotal role in the realm of cryptocurrencies, offering stability and liquidity to traders and exchange platforms through its flagship Stablecoin, USDT.
In mid-2020, the project boasted a market capitalization of approximately 4.5 billion. Fast forward to October 27, 2023, and Tether’s market capitalization stands impressively at 84.51 billion, according to data from CoinMarketCap.
Despite facing continuous criticism and occasional tension, Tether has consistently maintained a high level of transparency, showcasing its capability to effectively back its token. A team of top-notch professionals, much like the team behind Binance, meticulously oversees every aspect of its development.
What is the real objective?
Decentralization, a fundamental pillar of the Crypto philosophy, has empowered people by allowing them to take control of their own assets and transactions without the need for centralized intermediaries.
This has provided new opportunities to communities around the world, where many of them were in some way partially or totally excluded from the traditional financial system.
The demand levied against Binance and Tether inevitably provoke questions about the approach to cryptocurrencies by certain stakeholders, revealing a potential lack of comprehension regarding the concepts of decentralization, security, and transparency. These platforms, to a significant extent, serve as crucial contributors to the global financial landscape.
Blaming these companies for individual illicit actions of certain people, is perhaps erroneous logic, which undermines the true potential of blockchain technology, to empower people and free them from restrictions imposed by some centralized financial systems.
It is time to recognize the role of the Crypto ecosystem in this financial revolution of the 21st century, understanding the differences and knowing how to separate the main objectives and these particular issues.