Bitcoin Hits $109K as Coinbase Hints at Potential USDT Delisting

Coinbase CEO Hints at Potential USDT Delisting

Coinbase CEO Brian Armstrong has hinted that the exchange may delist Tether’s USDT stablecoin if upcoming U.S. legislation enforces stricter compliance measures. Speaking to The Wall Street Journal, Armstrong noted that future regulations could require stablecoins to be backed solely by U.S. Treasury bonds and undergo frequent audits.

Although Tether already holds a significant portion of reserves in Treasury bonds, it also diversifies with Bitcoin and gold, which could conflict with potential new laws.

Regulatory Pressures and Market Shifts

The European Union’s MiCA framework has already placed heavy restrictions on stablecoin issuers, and a similar approach in the U.S. could severely impact Tether’s operations. Armstrong highlighted that two Senate bills targeting stablecoin regulations have been introduced, raising concerns for non-U.S. entities.

Meanwhile, Coinbase’s strategic partnership with Circle positions USDC as a strong competitor to USDT, potentially benefiting from tighter regulations.

Will Ripple’s RLUSD Gain Market Share?

With Tether facing regulatory challenges, the market may shift in favor of Ripple’s RLUSD and Circle’s USDC. Reports suggest Trump recently held a closed-door meeting with Ripple, fueling speculation that RLUSD could gain a stronghold in the $200 billion stablecoin market.

If new policies weaken USDT’s dominance, RLUSD and USDC may emerge as top contenders in the evolving stablecoin landscape.