Amid Monday’s broader market selloff, Jim Cramer said he was keeping a close eye on cryptocurrencies, particularly Tether.
“The largest stable coin is Tether. We do not know what Tether – a $60 billion fund – owns. At one point we thought they owned dollars and their funds were backed up with Treasuries. Subsequently, a lawsuit brought by New York State which led to the banning of Tether. We discovered that it has very little U.S. exposure and, instead, was backed up by commercial paper. We talked to SEC Chairman Gary Gensler last week about Tether and what they owned and he said he was concerned about Tether. He should be because what happens if they own the Chinese commercial paper that is connected in some way to Evergrande?
In 2008, a Lehman Brothers money fund collapsed and it was an accelerant to our vicious downturn. Could this happen again? Call me worried,” Cramer wrote in his latest column on Real Money.
Watch the video above to hear the message Cramer had for his critics.
Recap TheStreet Live: Everything Jim Cramer Is Watching 9/20/21