US Senator Sherrod Brown has sent letters to cryptocurrency exchanges and stablecoin issuers, including Coinbase, Gemini, Binance and Tether, asking how they protect consumers and investors. “I have significant concerns about the non-standard terms that apply to the redemption of certain stack coins,” the senator said.
US Senator raises concerns over Stablecoins
U.S. Senator Sherrod Brown (D-Ohio), chair of the U.S. Senate Committee on Banking, Housing and Urban Planning, announced Tuesday that he has sent letters to a number of crypto exchanges and issuers of stablecoin.
Recipients of his letters include Coinbase, Gemini, Paxos, Trusttoken, Binance.us, Center and Tether.
The senator asked these crypto companies how they “protect consumers and investors in the midst of the risks highlighted in the recent report of the president̵[ads1]7;s working group on financial markets.”
The announcement adds: “Senator Brown highlighted the difficulties that consumers and investors may face in understanding how stack coins work and their potential risks, citing the complex terms and conditions that many companies hide in small print.” The senator wrote in one of his letters:
I have significant concerns with the non-standard terms that apply to the redemption of certain stack coins, how these terms differ from traditional assets, and how these terms may not be consistent across digital asset trading platforms.
The senator argued that “buying stack coins through a trading platform may not give customers the same rights and privileges as a direct purchase from an issuer.”
He further noted: “Customers may have different rights based on the amount of stable coins owned or traded.” Senator Brown also asked six more questions in his letters, which can be found here.
What do you think about 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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