Tether (USDT), a major stablecoin issuer, has announced a voluntary wallet-freezing policy as part of its cooperation with U.S. regulatory agencies.
The new policy, effective from December 1, enables Tether to freeze activities related to individuals or entities on the U.S. Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List in the secondary market.
Paolo Ardoino, Tether's CEO, emphasised that this move is intended to enhance the positive use of stablecoin technology and ensure a safer ecosystem for all users.
Tether's USDT stablecoin has seen a market capitalisation surge to $90 billion, capturing nearly 70% of the stablecoin market, despite recent crackdowns on crypto firms in the U.S.