Coinbase CEO Brian Armstrong expects dramatic changes in US stablecoin legislation, with issuers eventually being compelled to back their dollar-pegged tokens wholly with US Treasury assets. Armstrong revealed his thoughts during an interview at the World Economic Forum in Davos, Switzerland, and predicted that stablecoin regulations would become clearer in the near future.
He believes that the new guidelines will require all US-based stablecoin operators to completely back their tokens with US Treasury bonds and undergo regular audits to maintain transparency. Armstrong stated that Tether, one of the largest stablecoin issuers, may face significant issues if it fails to meet these new rules.
He also stated that if Tether (USDT) fails to comply with the new legislation, Coinbase will be compelled to delist the cryptocurrency from its platform in the United States. Despite these problems, Coinbase will continue to provide USDT services for the time being, allowing customers to transfer to what Armstrong sees as a safer and more compliant system.
This stance follows Coinbase’s prior decision to delist noncompliant stablecoins in Europe in anticipation of regulatory changes under the MiCA framework. However, the exchange has indicated that it might relist these coins in the future if they fulfill compliance criteria.As stablecoin restrictions change, overseas issuers may have more difficulties accessing the US market, and new policies are expected to reinforce the US dollar’s status as the leading global reserve currency.
