U.S. U.S. “I have significant concerns with the non-standardized terms applicable to redemption of particular stablecoins,” the senator said.
US Senator Raises Concerns Regarding Stablecoins
U.S. U.S. Senator Sherrod (D-Ohio), is the chair of U.S. Senate Committee on Banking, Housing, and Urban. He announced Tuesday that letters have been sent to several stablecoin and crypto exchanges.
His letters were received by Coinbase, Gemini and Trusttoken as well as Centre, Centre, Tether, Trusttoken, Binance.us and Binance.us.
The senator asked these crypto companies how they “are protecting consumers and investors amid the risks highlighted in the recent report by the President’s Working Group on Financial Markets.”
The announcement adds: “Senator Brown emphasized the difficulties consumers and investors may face in understanding how stablecoins work and their potential risks, citing the complicated terms and conditions that many companies hide in the fine print.” The senator wrote in one of his letters:
Concerns about the terms for redemption of certain stablecoins and their differences from traditional assets as well as how they may be inconsistent across platforms that trade digital asset, are major concerns.
The senator asserted that “the purchase of stablecoins through a trading platform may not provide customers with the same rights and entitlements as a direct purchase from an issuer.”
Furthermore, he noted: “Customers may have different rights based on the amount of stablecoins owned or transacted.” Senator Brown also asked six more questions in his letters which can be found here.
Do you agree with Senator Sherrod Brown’s request to stablecoin and cryptocurrency exchanges for information on how they protect investors and consumers? Comment below.
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