Brian Armstrong signals potential changes as stablecoin rules tighten.
Tether’s Future on Coinbase
Coinbase CEO Brian Armstrong stated that the exchange is prepared to delist Tether (USDT) if evolving U.S. regulations demand stricter compliance. This statement, reported by the Wall Street Journal, reflects growing uncertainty around stablecoins under President Donald Trump’s administration.
Armstrong suggested that forthcoming regulations might require stablecoins to hold reserves exclusively in U.S. Treasury bonds and undergo regular audits to protect customers.
Previous Delisting in Europe
Coinbase previously removed Tether from its European platform, citing its noncompliance with the EU’s Markets in Crypto-Assets (MiCA) framework. This action signals Coinbase’s readiness to align with regulatory frameworks worldwide.
Tether’s Reserve Reporting Practices
Tether, the market’s largest stablecoin, holds 80% of its reserves in Treasury bills and publishes quarterly attestations by BDO Italia. These practices were implemented after 2022’s market crises to improve transparency.
However, critics argue that these attestations fall short of full audits, raising questions about whether Tether could meet future U.S. requirements for comprehensive financial reporting.
Global Strategy for Tether
Tether’s business focus predominantly lies in emerging markets outside the U.S. and Europe. The company recently announced plans to relocate its headquarters to El Salvador, a crypto-friendly jurisdiction, to navigate stricter global regulations.
Potential Industry Impact
Should Coinbase delist Tether, it would mark a significant shift in the stablecoin landscape, potentially benefiting competitors like Circle’s USDC and Ripple USD, which are positioning themselves for regulatory compliance.
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