Tether Could Be Delisted If U.S. Law Requires Reserves Victor | usagoldmines.com

Coinbase may Delist Tether if Transparency Issues Persist

Armstrong emphasized that Coinbase would comply with any legal mandates from the U.S. government. Tether’s popularity may be at risk due to its lack of transparency amid increasing regulatory pressure. Coinbase’s potential delisting of Tether would be a blow to the stablecoin’s popularity. Nowadays, it is widely used by crypto traders and investors as a haven during periods of market volatility.

JUST IN: Coinbase CEO Armstrong says the exchange would delist Tether if required by law, as US legislation may mandate full reserves in US Treasury bonds.

According to the Wall Street Journal, Tether is under investigation by the Justice and Treasury Departments for lacking… pic.twitter.com/cnk8VgKSl7

— Cointelegraph (@Cointelegraph) January 21, 2025

Experts believe a more transparent, fully backed stablecoin system could benefit the crypto market long-term. It provides more confidence for institutional investors and improves the overall reputation of digital assets. However, Tether’s supporters contend that the coin has managed to maintain its peg to the dollar despite lacking full audits, citing the success of the coin’s widespread use.