US Senator Asks Coinbase, Gemini, Binance and Tether How to Protect Consumers – Bitcoin News Regulatory

US Senator Sherrod Brown has sent letters to crypto exchanges and stablecoin issuers including Coinbase, Gemini, Binance and Tether, asking how to protect consumers and investors. “I have great concerns about the non-standard terms that apply to redeeming certain hard currencies,” the senator said.

US Senator raises concerns about stablecoins

US Senator Sherrod Brown (D-Ohio), chair of the US Senate Committee on Banking, Housing, and Urban Currency, announced on Tuesday that he has sent letters to a number of cryptocurrency exchanges and stablecoin issuers.

Recipients of his messages include Coinbase, Gemini, Paxos, Trusttoken, Binance.us, Center and Tether.

The senator asked these crypto firms how to “protect consumers and investors amid the risks highlighted in the latest report from the President’s Working Group on Financial Markets.”

The announcement adds: “Senator Brown emphasized the difficulties consumers and investors may encounter in understanding how stablecoins work and their potential risks, noting the complex terms and conditions that many companies hide in minute detail.” The senator wrote in one of his letters:

I have major concerns about the non-standard terms applicable to redeeming certain stablecoins, how these terms differ from traditional assets, and how these terms may not be consistent across digital asset trading platforms.

The senator emphasized that “purchasing stablecoins through an exchange may not give customers the same rights and entitlements as purchasing directly from the issuer.”

Moreover, he noted, “Customers may have different rights based on the amount of stablecoins owned or handled.” Senator Brown also asked six other questions in his letters that can be found Here.

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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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