According to CEO Brian Armstrong, Coinbase would delist Tether’s USDT stablecoin if compelled by new legislation. A few current attempts to rework US crypto legislation would impact the firm, but they have not advanced yet.

So far, Tether has suffered a minor setback from the EU’s MiCA legislation, but a similar effort in the US could seriously disrupt its operations.

US Legislative Changes Could Challenge Tether

Brian Armstrong, the CEO of Coinbase, has been vocal about the previous government’s crackdown on crypto. The exchange faced significant challenges from the SEC under Gensler’s leadership.

Although a US Court sided with his firm in the SEC legal battle, the CFTC issued a subpoena against it. Additionally, Armstrong accused the FDIC of withholding key documents.

However, the exchange has welcomed the positive regulatory changes under the new government. Armstrong claims that Coinbase would delist Tether’s USDT if compelled.

“There are a lot of people with [USDT], and we want to give them an off-ramp, if we want to help them transition to a system that we think is more secure,” Armstrong said.

Armstrong added that US legislators may force Tether and other stablecoin issuers to hold their reserves in US Treasury bonds and pass regular audits. Tether holds much of its reserves in Treasury bonds, but also maintains reserves

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Author: Landon Manning