I believe the U.S. minimum requirement is currently at 10%, but you do remember how bad it all came crashing down 13 years ago, right?

So yes, it does matter if we let financial institutions disregard risk in the pursuit of profit, when they are gambling with other people’s money.

In the case of Tether though, it’s not a traditional bank that issues interest yielding loans based on the lender’s credit profile.

Rather, the suspicion has been that they are simply issuing USDT coins to buy up crypto, which causes the latter to increase in value, but the money to buy these assets were never there in the first place, and that is why today, they can only show a fraction of the cash they claim to have received.