Watch Out: Details Emerge About New Stablecoin to Hit the Market That Are Causing Controversy

According to important information published on the official website of $USAT, the US dollar-pegged stablecoin that Tether will issue exclusively for the US market, $USAT is not insured by any government agency.

The statement noted that $USAT is not legal tender (under Title 31, Section 5103 of the United States Code) and is not issued, backed, endorsed, or guaranteed by the U.S. government. Furthermore, $USAT is not subject to the safeguards of the Federal Deposit Insurance Corporation (FDIC), the Securities Investor Protection Corporation (SIPC), or any other government agency.

Warning on the $USAT official website.

It was stated that the company is not the issuer of $USAT, and the official issuer of the stablecoin will be Anchorage Digital Bank, NA.

Tether, the world's largest stablecoin issuer, announced yesterday that it would introduce a new stablecoin, $USAT, that would comply with US regulations. This sparked controversy, as Tether's largest stablecoin, USDT, failed to comply with US regulations.

Bo Hines, formerly the White House cryptocurrency advisor, was appointed to manage the $USAT token.

*This is not investment advice.