He predicts that in the future, regulations will require issuers of stablecoins to place 100 per cent of their reserves in US Treasury securities and to undergo regular financial audits.
What happened? As informed by IBC Group Official, Brian Armstrong, CEO of the leading US centralised cryptocurrency exchange (CEX) Coinbase, told the WSJ that he is prepared to delist the USDT stablecoin if the asset fails to meet the requirements of US regulators.
The entrepreneur expects future regulations to require issuers of stablecoins to place 100 per cent of their reserves in US Treasury securities and undergo regular financial audits.
COINBASE CEO SAYS STABLECOINS COULD NEED US TREASURY BACKING SOON
Brian Armstrong's talking big moves in stablecoin regs.
He thinks future US laws could demand stablecoin issuers back their tokens with US Treasury bills.
Just back home from Trump's inauguration, Armstrong was impressed by the cryptocurrency inauguration dinner hosted by current US President Donald Trump. Armstrong noted that the cryptocurrency industry has suffered from a lack of clear regulations and has faced unfair treatment several times over the past four years; now that Trump is in office, he believes the industry will see a friendlier regulatory environment.
Armstrong also discussed key goals of the legislation, including:
Classification of tokens: Separating tokens into securities, commodities and other categories to address issues not covered by traditional securities laws. Armstrong said there is a need for a 'decentralisation test' so that tokens that have achieved a sufficient level of decentralisation are treated as commodities rather than securities.
Regulation of stablecoins: Armstrong said stablecoins such as USDT should have equivalent cash or short-term US bonds as full financial backing and be subject to regular checks to ensure the security of funds. He believes stablecoins can improve the efficiency of cross-border payments while upholding the dollar's status as a reserve currency.
Armstrong said there are already many nonpartisan voices pushing for these regulations, and that the legislative process is expected to accelerate in the coming months.
WSSWJ Material
What else is known? Tether's USDT, pegged to the US dollar, is the largest stablecoin and ranks fourth in the overall cryptocurrency rankings by market capitalisation after Bitcoin, Ethereum and XRP with an indicator of $138.54 billion.
Coinbase has previously delisted USDT for users in Europe, as the asset is not compliant with the EU's Markets in Cryptocurrency Act (MiCA).
In addition, as part of a strategic partnership, Coinbase is promoting another stablecoin, USDT, developed together with fintech company Circle. USDT is the main competitor to USDT, whose market capitalisation exceeds $51 billion.
MarketCap
Also in late last year, Coinbase delisted wBTC bitcoins wrapped by depositories BitGo and BiT Global, associated with blockchain founder TRON (TRX), Justin Sun.
This came shortly after Coinbase announced the launch of its wrapped bitcoin cbBTC on its second-tier (L2) Base network, based on the Ethereum blockchain. In response, BiT Global has filed a lawsuit against the exchange.
COIN: Is a Long-Dated Leader Facing New Challenges?
With equities soaring in 2024, many investors are cautious about putting more money into the market. Of course, there is no shortage of opportunities in the stock market, but finding them today seems more difficult than a year ago. Not sure where to invest?
One of the best ways to identify new high-potential opportunities is to look at the best-performing portfolios this year. ProPicks AI offers 6 portfolios from Investing.com that identify the best stocks to buy right now. For example, ProPicks AI has identified 9 little-known stocks that have risen more than 25% this year alone.
With the monthly update of new stocks, these could provide significant gains in the coming years. Is COIN one of them?
Sign up for Spaziocrypto®
The community for blockchain and cryptocurrency enthusiasts looking for free educational content and detailed analysis.
What happened? As informed by IBC Group Official, Brian Armstrong, CEO of the leading US centralised cryptocurrency exchange (CEX) Coinbase, told the WSJ that he is prepared to delist the USDT stablecoin if the asset fails to meet the requirements of US regulators.
The entrepreneur expects future regulations to require issuers of stablecoins to place 100 per cent of their reserves in US Treasury securities and undergo regular financial audits.
Just back home from Trump's inauguration, Armstrong was impressed by the cryptocurrency inauguration dinner hosted by current US President Donald Trump. Armstrong noted that the cryptocurrency industry has suffered from a lack of clear regulations and has faced unfair treatment several times over the past four years; now that Trump is in office, he believes the industry will see a friendlier regulatory environment.
Armstrong also discussed key goals of the legislation, including:
Classification of tokens: Separating tokens into securities, commodities and other categories to address issues not covered by traditional securities laws. Armstrong said there is a need for a 'decentralisation test' so that tokens that have achieved a sufficient level of decentralisation are treated as commodities rather than securities.
Regulation of stablecoins: Armstrong said stablecoins such as USDT should have equivalent cash or short-term US bonds as full financial backing and be subject to regular checks to ensure the security of funds. He believes stablecoins can improve the efficiency of cross-border payments while upholding the dollar's status as a reserve currency.
Armstrong said there are already many nonpartisan voices pushing for these regulations, and that the legislative process is expected to accelerate in the coming months.
WSSWJ Material
What else is known? Tether's USDT, pegged to the US dollar, is the largest stablecoin and ranks fourth in the overall cryptocurrency rankings by market capitalisation after Bitcoin, Ethereum and XRP with an indicator of $138.54 billion.
Coinbase has previously delisted USDT for users in Europe, as the asset is not compliant with the EU's Markets in Cryptocurrency Act (MiCA).
In addition, as part of a strategic partnership, Coinbase is promoting another stablecoin, USDT, developed together with fintech company Circle. USDT is the main competitor to USDT, whose market capitalisation exceeds $51 billion.
Also in late last year, Coinbase delisted wBTC bitcoins wrapped by depositories BitGo and BiT Global, associated with blockchain founder TRON (TRX), Justin Sun.
This came shortly after Coinbase announced the launch of its wrapped bitcoin cbBTC on its second-tier (L2) Base network, based on the Ethereum blockchain. In response, BiT Global has filed a lawsuit against the exchange.
COIN: Is a Long-Dated Leader Facing New Challenges?
With equities soaring in 2024, many investors are cautious about putting more money into the market. Of course, there is no shortage of opportunities in the stock market, but finding them today seems more difficult than a year ago. Not sure where to invest?
One of the best ways to identify new high-potential opportunities is to look at the best-performing portfolios this year. ProPicks AI offers 6 portfolios from Investing.com that identify the best stocks to buy right now. For example, ProPicks AI has identified 9 little-known stocks that have risen more than 25% this year alone.
With the monthly update of new stocks, these could provide significant gains in the coming years. Is COIN one of them?
Sign up for Spaziocrypto®
The community for blockchain and cryptocurrency enthusiasts looking for free educational content and detailed analysis.
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