Coinbase CEO Brian Armstrong has suggested the exchange might delist USDT if new U.S. regulations require stricter compliance. Committed To Compliance The remarks by the CEO come as the crypto industry braces for potential rules mandating stablecoins to be fully backed by U.S. Treasury bonds and subject to regular audits. Although Tether holds a significant portion of its reserves in Treasury bonds, its diversification into assets like Bitcoin (BTC) and gold could put it at odds with such regulations. Still, Armstrong emphasized that Coinbase remains fully committed to compliance, even if it means removing USDT. Stablecoin Competition Heats Up As a major shareholder in Circle, the issuer of USDC, Coinbase could benefit via a regulatory environment favoring USDC over competitors. The move could significantly shift the $218 billion stablecoin market, with both USDC and RLUSD poised to experience significant gains if USDT falters. In any case, this potential delisting underscores the growing regulatory scrutiny in the U.S., which may disrupt non-U.S. entities like Tether, reshaping the global stablecoin landscape.
