US Senator asks Coinbase, Gemini, Binance, Tether, how they protect consumers-regulation
US Senator asks Coinbase, Gemini, Binance, Tether, how they protect consumers-regulation
US senator Sherd Brown has sent letters to cryptocurrency exchanges and stable coin emitters, including Coinbase, Gemini, Binance and Tether, and asked how they protect consumers and investors. "I have significant concerns about the non -standardized conditions that apply to the redemption of certain stable coins," said the senator.
US senator expresses concerns about stable coins
US Senator Sherrod Brown (D-OHIO), Chairman of the US Senate Committee for Banking, Housing and Urban, announced on Tuesday that he sent letters to a number of crypto exchanges and stable co-emitters.
The recipients of his letters include Coinbase, Gemini, Paxos, Trusttoken, Binance.us, Center and Tether.
The senator asked these crypto companies, such as "protecting consumers and investors in view of the risks that were emphasized in the most recent report by the President of the President for Financial Markets".
In the announcement, it continues: "Senator Brown emphasized the difficulties of consumers and investors to understand the functioning of stable coins and their potential risks, and referred to the complicated terms and conditions that many companies hide in the small print." The Senator wrote in one of his letters:
I have significant concerns about the non -standardized conditions that apply to the redemption of certain stable coins, how these conditions differ from traditional assets and how these conditions may not be consistent on all trading platforms for digital assets.
The Senator claimed that "the purchase of stable coins via a trading platform may not grant customers the same rights and claims as a direct purchase from an issuer".
In addition, he found: "Customers can have different rights, depending on the amount of the stable coins that they own or made." Senator Brown also asked six other questions in his letters that you can find here .
What do you think that Senator Sherrod Brown asks crypto exchanges and stable coin emitters how to protect consumers and investors? Let us know in the comment area below.
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