Coinbase is considering removing Tether stablecoin from its platform
CEO Brian Armstrong indicated this might be necessary if future regulations require stablecoins to hold asset reserves in US Treasury bonds and undergo regular audits.
Coinbase has stated it may remove Tether’s stablecoin from its platform, depending on how US regulations evolve under President Donald Trump. CEO Brian Armstrong mentioned that the exchange could delist the $138 billion-dollar-pegged stablecoin if US laws demand it. Armstrong suggested that future stablecoin regulations might require asset reserves to be held in Treasury bonds and subject to regular audits for customer protection.
Tether, which dominates the stablecoin market ahead of competitors like Circle’s USDC and Ripple’s Ripple USD, was previously delisted from Coinbase’s European platform due to noncompliance with the EU’s MiCA framework. Tether’s operator, which holds 80% of its reserves in Treasury bills, publishes regular financial attestations by independent accounting firm BDO Italia, addressing concerns raised after the 2022 market downturn.
Despite these updates, critics argue the attestations don’t fully substitute for audits. Tether’s adherence to potential new US regulations remains uncertain. The company mainly operates in emerging markets and plans to relocate its global headquarters to El Salvador, the first nation to legalise Bitcoin.
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