US Senator Asks Coinbase, Gemini, Binance, Tether How They’re Protecting Consumers

US Senator Asks Coinbase, Gemini, Binance, Tether How They’re Protecting Consumers

US Senator Asks Coinbase, Gemini, Binance, Tether How They're Protecting Consumers

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 mentioned.

US Senator Raises Concerns Regarding Stablecoins

U.S. Senator Sherrod Brown (D-Ohio), chair of the U.S. Senate Committee on Banking, Housing, and Urban, introduced Tuesday that he has despatched letters to a variety of crypto exchanges and stablecoin issuers.

Among the 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 Financial Markets.”

The announcement provides: “Senator Brown emphasised the difficulties shoppers and traders could face in understanding how stablecoins work and their potential dangers, citing the difficult phrases and circumstances that many firms disguise within the fantastic print.” The senator wrote in certainly one of 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 way of a buying and selling platform could not present clients with the identical rights and entitlements as a direct buy from an issuer.”

Furthermore, he famous: “Customers could have totally different rights primarily based on the quantity of stablecoins owned or transacted.” Senator Brown additionally requested six extra questions in his letters which could be discovered here.

What do you concentrate on Senator Sherrod Brown asking crypto exchanges and stablecoin issuers about how they’re defending shoppers and traders? Let us know within the feedback part beneath.

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