U.S. Senator Sherrod Brown has despatched letters to cryptocurrency exchanges and stablecoin issuers, together with Coinbase, Gemini, Binance, and Tether, asking how they’re defending shoppers and traders. “I’ve important considerations with the non-standardized phrases relevant to redemption of specific stablecoins,” the senator stated.
US Senator Raises Issues Concerning Stablecoins
U.S. Senator Sherrod Brown (D-Ohio), chair of the U.S. Senate Committee on Banking, Housing, and City, introduced Tuesday that he has despatched letters to numerous crypto exchanges and stablecoin issuers.
Among the many recipients of his letters are Coinbase, Gemini, Paxos, Trusttoken, Binance.us, Centre, and Tether.
The senator requested these crypto firms how they “are defending shoppers and traders amid the dangers highlighted within the current report by the President’s Working Group on Monetary Markets.”
The announcement provides: “Senator Brown emphasised the difficulties shoppers and traders might face in understanding how stablecoins work and their potential dangers, citing the sophisticated phrases and circumstances that many firms cover within the advantageous print.” The senator wrote in one in all his letters:
I’ve important considerations with the non-standardized phrases relevant to redemption of specific stablecoins, how these phrases differ from conventional belongings, and the way these phrases is probably not constant throughout digital asset buying and selling platforms.
The senator asserted that “the acquisition of stablecoins by a buying and selling platform might not present clients with the identical rights and entitlements as a direct buy from an issuer.”
Moreover, he famous: “Prospects might have completely different rights primarily based on the quantity of stablecoins owned or transacted.” Senator Brown additionally requested six extra questions in his letters which might be discovered right here.
What do you concentrate on Senator Sherrod Brown asking crypto exchanges and stablecoin issuers about how they’re defending shoppers and traders? Tell us within the feedback part under.
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