Will Coinbase Delist USDT? U.S. Crypto Regulations Take a Shocking Turn

After Donald Trump’s recent comments on cryptocurrency regulations following his inauguration, excitement swept through the market. Bitcoin hit a new all-time high (ATH) of $109K, recovering from a rough patch. However, many are still worried that these regulatory changes might negatively affect non-U.S. entities, like Tether.

In light of the upcoming regulatory shifts, Coinbase CEO Brian Armstrong Brian Armstrong Brian Armstrong is the CEO of Coinbase Global, the biggest bitcoin exchange in the US. He is a former software developer for Airbnb. In 2012, Brian teamed up with Fred Ehrsam and launched Coinbase in San Francisco. Even though co-founder Fred Ehrsam left the company in 2017, he remains a board member and owns 6% of the business. On April 14, 2021, Coinbase went public through a direct offering on the Nasdaq. Soon it momentarily hit $100 billion in market capitalization. About 19% of company shares are owned by Armstrong.   Quick Facts Full name Brian Armstrong Birth January 25, 1983, in San Jose, California, U.S. Education Bachelor of Arts/Economics, Master of Arts/Science, Rice University Nationality American Martial Status Married Net Worth $11.9B (Refer for real-time)   He supports the need for clear regulations and policies for cryptocurrency trading and decentralized transactions. Brian has collaborated with diplomats to formulate the policies. He continues to contribute to the crypto community and blockchain technology.   Brian Armstrong: Timeline of events 2010: Discovered Bitcoin – Read the Bitcoin whitepaper and became interested in decentralized finance. 2012: Co-founded Coinbase – Launched Coinbase with Fred Ehrsam to simplify Bitcoin buying and selling. 2015: Expanded Coinbase Services – Introduced Coinbase Exchange and support for multiple cryptocurrencies. 2017: Led Coinbase Through Crypto Boom – Scaled operations as Bitcoin surged to $20,000, making Coinbase a top exchange. 2021: Coinbase IPO on NASDAQ – Took Coinbase public (COIN) at a $86B valuation, marking a major crypto milestone. 2022: Advocated for Crypto Regulation – Engaged with lawmakers to promote clear crypto regulations in the U.S. 2023: Launched Coinbase’s Layer-2 ‘Base’ – Introduced Base, a Layer-2 blockchain to improve Ethereum scalability. 2024: Pushing for Global Crypto Adoption, Married to Angela Meng.   Year Award/Notable Work Details 2012 Co-Founded Coinbase Built one of the world’s largest cryptocurrency exchanges. 2017 Fortune 40 Under 40 – Technology Recognized for leadership in the crypto industry. 2021 Coinbase IPO on NASDAQ Took Coinbase public with an $86B valuation, a first for a major crypto company. 2021 Time 100 Most Influential People Listed for his impact on mainstream crypto adoption. 2023 Launched Coinbase’s Layer-2 ‘Base’ Introduced a Layer-2 blockchain to enhance Ethereum scalability.   Useful Links to Connect With Brian Armstrong Platform Link X (formerly Twitter) https://twitter.com/brian_armstrong LinkedIn https://www.linkedin.com/in/brianarmstrong Coinbase Official Website https://www.coinbase.com Brian Armstrong’s Personal Blog https://brianarmstrong.com   EntrepreneurInvestorDeveloper/ProgrammerCrypto and Blockchain Expert suggested that the exchange might delist Tether’s USDT stablecoin if stricter U.S. laws are passed. This comes as the U.S. crypto industry braces for changes that could reshape the stablecoin market.

Tether Faces Growing Regulatory Challenges

Armstrong, in an interview with The Wall Street Journal, expressed concerns that future U.S. regulations could require stablecoin issuers to back their reserves solely with U.S. Treasury bonds and undergo regular audits. While Tether already holds a large portion of its reserves in Treasury bonds, its inclusion of assets like Bitcoin and gold could conflict with such regulations.

He also pointed out the challenges Tether has faced in Europe, where the MiCA framework has imposed tighter rules on stablecoin issuers. If similar regulations emerge in the U.S., Tether’s operations could be significantly impacted, even after moving to El Salvador to reduce regulatory risks.

Coinbase Comes In Strong

Despite the issues facing Tether, Armstrong assured that Coinbase is ready to comply with any new laws—even if that means delisting USDT. He also highlighted Coinbase’s strong partnership with Circle, the issuer of USDC, a direct competitor to Tether.

As a major shareholder in Circle, Coinbase could benefit from a regulatory environment that favors USDC, particularly in the U.S. and European markets.

With the stablecoin market valued at $218.7 billion, Armstrong believes that regulatory changes could shake up the current market, giving Circle a better chance to gain market share.

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Is the U.S. Becoming More Crypto-Friendly or Just Targeting Non-U.S. Entities?

While the U.S. government seems to be shifting toward a more crypto-friendly stance, Armstrong cautioned that enforcement actions could still target non-U.S. companies like Tether. Two Senate bills that aim to restrict stablecoin issuers have been introduced, but they have not gained much momentum.

Armstrong is confident that Coinbase will support any regulatory changes—even those that could hurt Tether. This could signal a major shift in the stablecoin market, with implications for both issuers and users alike.

New Market Opportunities for Ripple & USDC

If Tether’s dominance weakens, Ripple’s RLUSD and Circle’s USDC could have a better shot at capturing a larger share of the $200 billion stablecoin market. Interestingly, Trump recently held a private meeting with Ripple, sparking speculation that RLUSD could soon gain regulatory clarity and carve out its place in the stablecoin market.

The stage is set for a new chapter in the crypto world, where the balance of power among stablecoins may soon shift.