Coinbase Could Delist Tether Under Possible Laws | Airdrop Alert Pro

CEO Brian Armstrong says Coinbase will delist Tether’s USDT Stablecoin If forced by new legislation. There are currently some attempts to change U.S. encryption legislation that will have an impact on the company, but no progress has been made yet.

Tether has so far suffered minor setbacks from EU MiCA legislation, but similar efforts in the United States could seriously disrupt its operations.

US legislative changes may pose challenges to Tether

Brian Armstrong, CEO of Coinbasehas been outspoken about the previous administration’s crackdown on cryptocurrencies. Under Gensler’s leadership, the exchange faced significant challenges from the SEC.

Although the U.S. courts Stand with his company In the SEC legal battle, CFTC issues subpoena against it. In addition, Armstrong also accused the FDIC of Withhold key documents.

However, the exchange welcomed the new administration’s positive regulatory changes. Armstrong claim If necessary, Coinbase will delist Tether’s USDT.

“There are a lot of people who own (USDT), and if we want to help them transition to what we think is a more secure system, we want to give them an outlet,” Armstrong said.

Armstrong added that U.S. lawmakers could force Tether and other stablecoin issuers Holds reserves of U.S. Treasury securities and passes regular audits. Tether holds the majority of its reserves in Treasury bonds, but also holds reserves in commodities such as Bitcoin or gold.

This particular issue is also Brings significant challenges to USDT Under the new EU MiCA regulations.

In other words, Armstrong predicts that Tether may have similar problems in the future. In this case, he will cooperate with the delisting request, Just like EU exchanges do.

also, Coinbase is Circle’s major shareholdera smaller stablecoin that directly challenges Tether’s European market dominance.

“The stablecoin scene is worth $218.7 billion, and this move could be a game-changer, especially as the U.S. struggles to stay ahead of the U.S. dollar. This could be the start of some major changes for Tether and its competitors.” Mario Nawfal release on X (formerly Twitter).

In other words, although the United States is moving toward a new regulatory model that supports cryptocurrencies, enforcement actions are still possible, especially against non-U.S. crypto entities.

Armstrong mentioned that two bills have been introduced in the Senate that would impose these restrictions on Tether, but both bills have not yet progressed. Although Tether recently moved to El Salvadorit still needs the US market.

Ultimately, it’s anyone’s guess how likely these regulations are to pass. The U.S. cryptocurrency space is pushing for a sweeping new regulatory framework that will almost certainly impact Tether.

Armstrong hopes to show that Coinbase is ready to work with this framework, even if it ultimately sidelines Tether.