Coinbase is ready to stop supporting USDT at the request of the US authorities
Date: 2025-01-24 Author: Oliver Abernathy Categories: BUSINESS
Coinbase CEO Brian Armstrong expressed confidence that after Donald Trump takes office as President of the United States, the regulators' approach to cryptocurrencies will change. In his opinion, the country may adopt laws regulating the issuance and use of stablecoins. One of the key requirements of such laws may be the obligation of issuers to keep their reserves in US Treasury bonds.
If such rules are adopted, companies issuing stablecoins, such as Tether, will be forced to get rid of assets not associated with US Treasury bonds. Armstrong emphasized that if Tether refuses to comply with the new laws, Coinbase will be forced to remove USDT from the listing. At the same time, the exchange will offer its clients alternative solutions that it considers safer.
These statements come amid recent changes at Coinbase: in December, the platform suspended USDT trading for European users. The decision was due to the need to comply with the MiCA regulations, which require stablecoin issuers to be licensed and hold part of their reserves with banking institutions.
Tether has also faced difficulties in Europe. In November, the company's CEO Paolo Ardoino announced the end of support for EURT, a stablecoin pegged to the euro. This was due to stricter regulations from the EU. However, according to the company, by October 2024, the number of USDT users worldwide has reached 109 million.
Potential changes in stablecoin regulation in the United States could have a significant impact on the entire cryptocurrency market. Coinbase, as one of the largest exchanges, is already preparing to adapt its operations to the new realities to ensure compliance and the safety of its users.
