Coinbase CEO Brian Armstrong suggests that upcoming US stablecoin regulations might require issuers to back their dollar-denominated tokens entirely with US Treasury bills, complicating operations for offshore companies in the US market. In an interview at the World Economic Forum, he highlighted that compliance with new legislation would likely necessitate complete backing of stablecoins with Treasury bonds and periodic audits. Armstrong specifically mentioned that Coinbase would consider delisting USDt if Tether fails to meet these requirements. Currently, Coinbase aims to provide USDt services to allow customers a secure transition to compliant systems. Additionally, US President Donald Trump and Representative Tom Emmer have indicated a focus on advancing stablecoin legislation, which is aimed at solidifying the US dollar’s status as a global reserve currency. Armstrong noted the importance of stablecoins in future legislation as it progresses through a Republican-controlled Congress.

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