Coinbase CEO: Future stablecoin regs likely to demand full US Treasury backing
Brian Armstrong said his cryptocurrency exchange would delist USDt if Tether cannot comply with any new US legislation.
Coinbase CEO Brian Armstrong believes forthcoming US stablecoin regulations could require issuers to back their dollar-denominated tokens entirely with US Treasury bills — a move that could make it harder for offshore companies to serve the American market.
In an interview with The Wall Street Journal at the World Economic Forum in Davos, Switzerland, Armstrong said he expects stablecoin laws to become clearer in the near future. Two requirements could be that all stablecoin operators in the United States fully back their tokens with US Treasury bonds and complete periodic audits.
He singled out stablecoin issuer Tether as one company that could face the brunt of new legislation. Armstrong said Coinbase would delist USDt (USDT) if Tether could not comply with any new US legislation.
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Author: Sam Bourgi
