On January 22, 2025, in Davos, Switzerland, Coinbase CEO Brian Armstrong discussed potential US stablecoin regulations that may require issuers to fully back their dollar-denominated tokens with US Treasury bills. This could complicate operations for offshore companies targeting the American market.
Armstrong anticipates clearer stablecoin laws soon, which could mandate that all US stablecoin operators maintain complete backing with US Treasury bonds and undergo periodic audits. He highlighted Tether as a company likely to be significantly impacted by these new regulations.
Despite these challenges, Coinbase plans to continue offering USDt services to assist customers in transitioning to more secure systems. Armstrong emphasized the necessity of providing an off-ramp for Tether holders.
In the broader political context, US President Donald Trump has indicated that cryptocurrency will be a critical focus in his second term, with stablecoin legislation being prioritized. Republican Representative Tom Emmer stated that comprehensive market structure and stablecoin legislation will be Congress's first crypto-related priority.
The Payment Stablecoin Act, proposed by Senators Cynthia Lummis and Kirsten Gillibrand on April 17, 2024, aims to solidify the US dollar's status as a global reserve currency.