Will Coinbase Delist USDT? U.S. Crypto Regulations Take a Shocking Turn
Debashree Patra22 Jan 20255 min read
After Donald Trump’s recent comments on cryptocurrency regulations following his inauguration, excitement swept through the market. Bitcoin hit a new all-time high (ATH) of $109K, recovering from a rough patch. However, many are still worried that these regulatory changes might negatively affect non-U.S. entities, like Tether.
In light of the upcoming regulatory shifts, Coinbase CEO Brian Armstrong Brian Armstrong at coinbase Brian Armstrong is the Co-Founder and CEO of Coinbase, the largest digital asset exchange in the United States. Since 2012, Armstrong has played a major role in pushing cryptocurrency toward mainstream use. His work focuses on building a strong connection between traditional financial systems and the growing Web3 ecosystem. Under his leadership, Coinbase achieved a major milestone in 2021 when it became the first large crypto exchange to go public on the Nasdaq. The event was a key milestone for the crypto industry. It contributed to increased institutional confidence in digital assets and revealed that larger financial players are beginning to take the sector more seriously. Over the last few years, Brian Armstrong has dedicated his efforts to fortifying blockchain infrastructure. At the same time, he has been promoting the need for clearer regulatory frameworks to support the long-term expansion of the crypto market. Quick Facts Full name Brian Armstrong Birth January 25, 1983 Education Rice University (B.A. in Economics and Computer Science; M.S. in Computer Science) Nationality American Martial Status Married Net Worth Estimated between $9 billion and $14 billion Career Overview Brian Armstrong began his career as a software engineer at Airbnb. During his time there, he regularly faced the difficulties of international payments. Sending money across countries was often slow, complicated, and filled with delays. During 2025 and early 2026, Brian Armstrong spent more time strengthening on-chain infrastructure while also pushing for clearer regulations for the crypto industry. He supported the expansion of Base, Coinbase’s Layer-2 network. The network later started integrating private transaction capabilities after Coinbase acquired the Iron Fish team. Brian Armstrong: Timeline of events 2012: Co-founded Coinbase after participating in the Y Combinator startup program. 2015: Launched Coinbase Exchange, built specifically for professional traders. 2017: Led Coinbase during the massive crypto bull run, when the app became one of the most downloaded apps on the App Store. 2021: Took Coinbase public through a historic Direct Listing (IPO) on the Nasdaq, reaching a peak valuation of more than $100 billion. 2022: Guided Coinbase through the challenging Crypto Winter and launched the Coinbase NFT marketplace. 2023: Introduced Base, a Layer-2 Ethereum scaling solution designed to grow the on-chain economy. 2024: Helped secure approval for the iShares Bitcoin Trust (IBIT), with Coinbase acting as the main custodian for BlackRock. 2025: Acquired the team behind Iron Fish to bring privacy features into the Base network. 2026: Spoke at major crypto forums and held discussions with the Trump administration about the federal stablecoin regulatory framework. Recognition of Brian Armstrong: Year Recognition Details 2012 Y Combinator Alumnus Selected for the prestigious accelerator to build Coinbase. 2017 Fortune 40 Under 40 Recognized for pioneering the retail crypto exchange model. 2021 Nasdaq Direct Listing Orchestrated the first public listing of a major US crypto exchange. 2023 Base Mainnet Launch Released Coinbase's proprietary L2 network for decentralized apps. 2025 Iron Fish Team Acquisition Strategic move to bring on-chain privacy to the Coinbase ecosystem. EntrepreneurInvestorDeveloper/ProgrammerCrypto and Blockchain Expert suggested that the exchange might delist Tether’s USDT stablecoin if stricter U.S. laws are passed. This comes as the U.S. crypto industry braces for changes that could reshape the stablecoin market.
Tether Faces Growing Regulatory Challenges
Armstrong, in an interview with The Wall Street Journal, expressed concerns that future U.S. regulations could require stablecoin issuers to back their reserves solely with U.S. Treasury bonds and undergo regular audits. While Tether already holds a large portion of its reserves in Treasury bonds, its inclusion of assets like Bitcoin and gold could conflict with such regulations.
He also pointed out the challenges Tether has faced in Europe, where the MiCA framework has imposed tighter rules on stablecoin issuers. If similar regulations emerge in the U.S., Tether’s operations could be significantly impacted, even after moving to El Salvador to reduce regulatory risks.
Coinbase Comes In Strong
Despite the issues facing Tether, Armstrong assured that Coinbase is ready to comply with any new laws—even if that means delisting USDT. He also highlighted Coinbase’s strong partnership with Circle, the issuer of USDC, a direct competitor to Tether.
As a major shareholder in Circle, Coinbase could benefit from a regulatory environment that favors USDC, particularly in the U.S. and European markets.
With the stablecoin market valued at $218.7 billion, Armstrong believes that regulatory changes could shake up the current market, giving Circle a better chance to gain market share.
Is the U.S. Becoming More Crypto-Friendly or Just Targeting Non-U.S. Entities?
While the U.S. government seems to be shifting toward a more crypto-friendly stance, Armstrong cautioned that enforcement actions could still target non-U.S. companies like Tether. Two Senate bills that aim to restrict stablecoin issuers have been introduced, but they have not gained much momentum.
Armstrong is confident that Coinbase will support any regulatory changes—even those that could hurt Tether. This could signal a major shift in the stablecoin market, with implications for both issuers and users alike.
New Market Opportunities for Ripple & USDC
If Tether’s dominance weakens, Ripple’s RLUSD and Circle’s USDC could have a better shot at capturing a larger share of the $200 billion stablecoin market. Interestingly, Trump recently held a private meeting with Ripple, sparking speculation that RLUSD could soon gain regulatory clarity and carve out its place in the stablecoin market.
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The stage is set for a new chapter in the crypto world, where the balance of power among stablecoins may soon shift.
