US Senator Sherrod Brown sent letters to cryptocurrency exchanges and stablecoin issuers, including Coinbase, Gemini, Binance and Tether, asking them how they are protecting consumers and investors. “I am very concerned about the non-standard conditions applicable to the redemption of particular stablecoins,” said the senator.
US Senator Expresses Concerns Over Stablecoins
U.S. Senator Sherrod Brown (D-Ohio), chairman of the U.S. Senate Banking, Housing, and Planning Committee, announced on Tuesday that he had sent letters to a number of crypto exchanges and issuers of stable parts.
Among the recipients of his letters are Coinbase, Gemini, Paxos, Trusttoken, Binance.us, Center and Tether.
The senator asked these crypto companies how they “are protecting consumers and investors amid the risks highlighted in the President’s recent report from the President’s Financial Markets Task Force.”
The announcement adds, “Senator Brown highlighted the difficulties consumers and investors can face in understanding how stablecoins work and their potential risks, citing complicated terms and conditions that many companies hide in the fine print.” The senator wrote in one of his letters:
I am very concerned about the non-standard terms applicable to the redemption of particular stablecoins, how these terms differ from traditional assets, and how these terms may not be consistent on digital asset trading platforms.
The senator asserted that “purchasing stable coins through a trading platform may not provide clients with the same rights and rights as a direct purchase from an issuer.”
Further, he noted: “Customers may have different rights depending on the amount of stablecoins held or traded.” Senator Brown also posed six other questions in his letters which can be found here.
What do you think of Senator Sherrod Brown asking crypto exchanges and stablecoin issuers how they protect consumers and investors? Let us know in the comments section below.
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