Coinbase CEO: Future stablecoin regulations may require full guarantee with US bonds, and USDt may b

Brian Armstrong, CEO of Coinbase, the US cryptocurrency exchange, believes that the upcoming US stable currency regulations may require stable currency issuers to guarantee their tokens denominated in US dollars exclusively with US treasury bond, which may increase the difficulty for offshore companies to serve the US market.

Armstrong stated in an interview with The Wall Street Journal at the World Economic Forum (WEF) in Davos, Switzerland that he expects stablecoin laws to become more clear in the near future, with two requirements that may include: all stablecoin operators in the United States must fully guarantee their stablecoins with US Treasury bonds, and complete regular audits.

Armstrong Special mention was made of Tether, the issuer of the US dollar stablecoin USDt, which is believed to face the greatest pressure or challenge due to new regulations. He stated that if Tether fails to comply with any new regulations in the United States, Coinbase will delist USDt.

At the same time, Coinbase plans to continue providing USDt services to help customers access other cryptocurrency assets. Armstrong stated:

There are many people using Tether, and if we want to help them transition to a system we consider safer, we hope to provide them with an exit route

According to Cointelegraph, Coinbase previously delisted USDt and other non compliant stablecoins in Europe in response to the EU's Crypto Asset Market Act (MiCA). However, Coinbase A spokesperson for Cointelegraph stated that if these stablecoins "meet MiCA's compliance standards in the future," the exchange may relist.

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