Catenaa, Wednesday, January 29, 2025 – Coinbase CEO Brian Armstrong has suggested that regulatory pressures could lead to the delisting of Tether (USDT) from the platform. Armstrong’s comments come as lawmakers debate stricter rules for stablecoins, including full backing with US Treasury bonds and mandatory audits to ensure transparency.
Speaking at the World Economic Forum, Armstrong emphasized that Coinbase would prioritize compliance with new regulations, even if it means removing Tether from its offerings. “We aim to help our customers transition to a system that is more secure,” he said, highlighting the exchange’s continued support for off-ramping USDT users to compliant assets.
Tether, which dominates the stablecoin market with 65% share of the stablecoin market, has faced criticism for its financial disclosures. Its attestations, provided by BDO Italia, lack the rigor of full audits. Observers argue that such reporting may not satisfy potential US regulatory requirements.
USDT issuer Tether holds around 80% of its reserves in Treasury bills, with the remainder in assets like Bitcoin and gold. The company has recently shifted focus to emerging markets, announcing plans to move operations to El Salvador, a Bitcoin-friendly nation, to avoid regulatory constraints in the US and Europe.
Armstrong’s remarks follow Coinbase’s delisting of several tokens in Europe to comply with MiCA regulations, with a possibility for relisting if requirements are met. Meanwhile, competitors like Circle have strengthened efforts to promote USDC globally.
Tether’s future in the US remains uncertain as legislation like the Payment Stablecoin Act could mandate major changes to its reserve policies and operations.
