Trump’s latest post-inauguration comments regarding cryptocurrency regulations have created a joyful moment for Bitcoin and other assets. Bitcoin exited the volatile market with an ATH of $109k. However, there is still fear and panic in the market as many believe that this new policy change may affect non-US entities.
Raining serious doubts and staying out of the controversy, Coinbase CEO Brian Armstrong 
Brian Armstrong Brian Armstrong is one of the most well-known figures in the cryptocurrency industry today. He is an American investor, entrepreneur, and business manager. He is the CEO of Coinbase, a cryptocurrency platform. He is also one of the sought-after cryptocurrency experts and is often invited to speak at conferences around the world. Details: Organization: Coinbase Location: United States Education: Master’s degree in Computer Science from Rice University and Bachelor’s degree in Computer Science and Economics from Rice University Skills: Ruby and JavaScript Experience: CEO and Co-Founder of Coinbase from June 2012 to present Technical Product Manager At Airbnb from May 2011 to June 2012 CEO and Co-Founder of UniversityTutor.com from August 2003 to May 2012 1. What is Net Worth Armstrong? Armstrong is worth $2.4 billion
contractorInvestorDeveloper/programmerCrypto and blockchain expert 
She hinted that the exchange may delist Tether’s USDT stablecoin if new US legislation imposes stricter compliance requirements. The statement comes as the US cryptocurrency industry anticipates regulatory changes that could reshape the stablecoin market.
Regulatory shifts could pose a challenge for Tether
in interview In an interview with The Wall Street Journal, Armstrong predicted that future US regulations may require stablecoin issuers to back their reserves exclusively with US Treasuries and undergo regular audits. While Tether already holds a large portion of its reserves in Treasuries, it is also diversifying with commodities like bitcoin and gold, which could put it at odds with potential legislation.
The CEO highlighted the issues Tether has already faced in the European Union under the MiCA framework, which imposed stricter rules on stablecoin issuers. A similar regulatory crackdown in the US could severely disrupt Tether’s operations, despite its recent move to El Salvador to mitigate regulatory risks.
Coinbase’s website on the Stablecoin marketplace
Armstrong emphasized Coinbase’s willingness to comply with any new laws, even if it means deleting USDT. It also highlighted Coinbase’s relationship with Circle, the issuer of the USDC stablecoin, which has positioned itself as a direct competitor to Tether.
As a major shareholder of Circle, Coinbase could benefit from a regulatory environment that favors USDC, especially in the US and European markets. Armstrong noted that the stablecoin market, currently worth $218.7 billion, could see significant transformation if Tether is marginalized by new legislation.
Why fear non-American entities?
Although the US government is showing signs of a more favorable regulatory stance on cryptocurrencies, enforcement actions remain possible, especially for non-US entities like Tether. Armstrong mentioned that two bills have been introduced in the Senate aimed at imposing restrictions on stablecoin issuers, but have yet to gain traction.
Armstrong is certain that they will support the changing regulatory scenario even if it means supporting measures that could disrupt Tether’s dominance. This development indicates a potential change in the stablecoin market, with implications for both issuers and users.
On the other hand, if Tether’s dominance declines, Ripple (RLUSD) and Circle (USDC) will have a better chance to capture the market. Notably, Trump held a closed-door meeting this month with Ripple, giving more reasons to believe that RLUSD will have a clear exit in the coming months to capture the $200 billion stablecoin market.
