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US Senator Asks Coinbase, Gemini, Binance, Tether How They’re Defending Customers

11/26/2021
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 customers and buyers. “I’ve important issues with the non-standardized phrases relevant to redemption of explicit stablecoins,” the senator stated.

US Senator Raises Considerations 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 a lot of 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 customers and buyers amid the dangers highlighted within the latest report by the President’s Working Group on Monetary Markets.”

The announcement provides: “Senator Brown emphasised the difficulties customers and buyers might face in understanding how stablecoins work and their potential dangers, citing the sophisticated phrases and circumstances that many firms cover within the tremendous print.” The senator wrote in one in all his letters:

I’ve important issues with the non-standardized phrases relevant to redemption of explicit stablecoins, how these phrases differ from conventional property, and the way these phrases might not be constant throughout digital asset buying and selling platforms.

The senator asserted that “the acquisition of stablecoins via 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 based mostly on the quantity of stablecoins owned or transacted.” Senator Brown additionally requested six extra questions in his letters which could be discovered right here.

What do you concentrate on Senator Sherrod Brown asking crypto exchanges and stablecoin issuers about how they’re defending customers and buyers? Tell us within the feedback part under.