sUSDS (susds) 
Coinbase May Delist Tether’s Stablecoin Amid US Regulatory Changes
Coinbase has expressed a willingness to remove Tether’s stablecoin from its platform depending on how the U.S. regulatory landscape evolves. According to recent statements, the largest U.S. crypto exchange could delist the $138 billion dollar-pegged stablecoin if new U.S. laws require it.
Potential Stablecoin Regulations
Coinbase CEO Brian Armstrong predicted that potential stablecoin regulations would mandate holding all asset reserves in Treasury bonds and conducting regular audits to ensure customer protection. This move is seen as a measure to enhance transparency and trust in the stablecoin market.
Coinbase has already delisted Tether from its European platform, citing noncompliance with the EU’s MiCA framework. This decision highlights the exchange’s commitment to adhering to regulatory requirements and ensuring a safe environment for its users.
Tether’s Market Dominance
Tether’s token, USDT, is the dominant crypto stablecoin ahead of competitors like Circle’s USDC. USDT’s operator currently holds 80% of its reserves in T-Bills, and publishes financial attestations issued by BDO Italia, an independent third-party accounting firm. These quarterly updates have become a norm following the 2022 market debacle, when concerns about proof-of-reserves arose.
While these attestations have eased some concerns about USDT, critics argue they do not constitute full audits. It remains unclear if Tether would comply with new U.S. legislation if it required more rigorous financial reporting.
Tether’s Global Presence
Notably, Tether’s business predominately exists in emerging markets outside the U.S. and Europe. The company also plans to move its global headquarters to El Salvador, the first country to legalize Bitcoin.
Coinbase’s potential delisting of USDT highlights the evolving regulatory landscape in the U.S. and the need for crypto exchanges to adapt to changing requirements.
As the crypto market continues to evolve, it is essential for investors and users to stay informed about regulatory changes and their impact on the industry. For more news and updates on the crypto space, visit Global Crypto News.
