[unabridged]

Why would the people running Tether not just park the money in a US Treasury ladder and collect the millions in interest each year? No hassle, no loss of sleep. Why play games? Why risk blowing up your cash cow and going to jail?

[loeg]

Their product largely revolves around not following US banking KYC and AML laws. They are locked out of US treasuries.

[rawtxapp]

The reason why Tether exists in the first place is that crypto businesses were cut off from traditional banking for a very long time and even today it's very hard for them to get bank accounts and operate easily.