Brian Armstrong Drops Tether Bombshell: “Comply or Cry, Darling!”

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In a move that could only be described as a masterstroke of regulatory theatrics, Brian Armstrong, the ever-dashing CEO of Coinbase Global, has declared that the cryptocurrency exchange will bid adieu to the controversial stablecoin Tether (USDT) if it dares to defy the whims of U.S. legislation. 🎭

Speaking at the World Economic Forum in Davos, Switzerland—a place where billionaires sip champagne and discuss the fate of the world—Armstrong waxed poetic about Coinbase’s unwavering commitment to regulatory compliance. He emphasized the importance of providing customers with a trading environment that is not only secure but also as legally pristine as a freshly laundered suit. 🕴️

Brian Armstrong Confirms Tether Delisting If Noncompliant

Tether, the darling of the cryptocurrency world, is pegged 1:1 to the U.S. dollar. However, it has been under the microscope for its alleged dalliances with criminal groups, sanctions dodgers, and other unsavory characters. Armstrong, ever the gentleman, mentioned that Coinbase will dutifully follow any U.S. legislation on stablecoins and may show Tether the door if it fails to meet the new legal standards. 🚪

In a tête-à-tête with Charles Forelle, the Deputy Editor-in-Chief of The Wall Street Journal, Armstrong quipped,

“There are a lot of people with Tether, and we want to give them an off-ramp to transition into a system that we think is more secure.”

Translation: “Darling, it’s time to upgrade your crypto wardrobe.” 👗

Coinbase had previously suspended Tether for its European users following the introduction of new EU laws on digital currencies. These laws require stablecoin issuers to keep a portion of their reserves in cash with banks. While Tether has grumbled about these rules, other stablecoin issuers, such as Circle’s USDC, have embraced them with open arms. 🤷‍♂️

Potential U.S. Stablecoin Laws Could Force Industry Changes

In the U.S., two bills have been proposed to regulate stablecoins, one of which aims to bar offshore and unregulated entities like Tether from issuing coins. Although these bills are still in legislative limbo, Armstrong believes that future legislation will likely require stablecoin issuers to hold 100% of their reserves in U.S. Treasury bonds and undergo frequent audits. 🕵️‍♂️

Tether, which is incorporated in the British Virgin Islands, claims that its stablecoin is backed by U.S. Treasury bonds, gold, Bitcoin, and other loans. However, it has yet to provide fully audited financial statements, much to the chagrin of regulators. Meanwhile, Circle, a U.S.-based stablecoin issuer and Coinbase investor, has proudly declared that its USDC stablecoin is fully compliant with current and emerging regulations. 🏦

Armstrong reiterated Coinbase’s commitment to operating within the legal framework while offering clients tools to transition into compliant assets. This aligns with the company’s efforts to meet the ever-increasing legal requirements governing its platform. 📜

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2025-01-22 01:28