Coinbase would delist Tether if necessary: WSJ

CCoinbase has expressed its willingness to remove Tether’s stablecoin from its platform based on the evolving US regulatory landscape under Donald Trump’s presidency.

According to the Wall Street Journal, Coinbase CEO Brian Armstrong said the largest US crypto exchange could write off A stablecoin pegged at $138 billion if new US laws required it. Armstrong predicted that eventual stable regulations would require holding all asset reserves in Treasuries and conducting regular audits to ensure customer protection.

Coinbase has already delisted Tether (USDT) of its European platform, citing non-compliance with the EU MiCA framework.

Tether’s token is the dominant crypto stablecoin ahead of competitors like Circle (USDC) and Ripple (RLUSD), the latest to arrive on the market.

The USDT operator held 80% of its reserves in T-Bills, the digital payment titan publishes financial certifications issued by BDO Italia, an independent third-party accounting firm.

Quarterly updates became the norm after the 2022 market meltdown. Industry players and crypto users demanded proof of reserves after the ecosystem discovered that several companies like FTX and Three Arrows Capital were insolvent.

While these attestations have allayed some concerns about USDT, critics say they do not constitute complete audits. It remains unclear whether Tether would comply with the new US legislation if it required more rigorous financial disclosures.

Notably, Tether’s business exists primarily in emerging markets outside the United States and Europe. The company also plans to move its global headquarters in El Salvador, the first country to legalize Bitcoin (BTC).