CCoinbase has expressed a willingness to remove Tether’s stablecoin from its platform depending on how the U.S. regulatory landscape evolves under President Donald Trump.

According to the Wall Street Journal, Coinbase CEO Brian Armstrong said the largest U.S. crypto exchange could delist $138 billion dollar-pegged stablecoin if new U.S. laws required it. Armstrong predicted that potential stablecoin regulations would mandate holding all asset reserves in Treasury bonds and conducting regular audits to ensure customer protection.

Coinbase already delisted Tether (USDT) from its European platform, citing noncompliance with the EU’s MiCA framework. 

Tether’s token is the dominant crypto stablecoin ahead of competitors like Circle’s (USDC) and Ripple’s (RLUSD), the latest market entrant.

USDT’s operator held 80% of its reserves in T-Bills, the digital payment titan publishes financial attestations issued by BDO Italia, an independent third-party accounting firm. 

The quarterly updates became a norm following the 2022 market debacle. Industry players and crypto users demanded proof-of-reserves after the ecosystem discovered several firms like FTX and Three Arrows Capital were insolvent.

While these attestations have eased some concerns about USDT, critics argue they do not constitute full audits. It remains unclear if Tether would comply with new U.S. legislation if it required more rigorous financial reporting.

Notably, Tether’s business predominately exists in emerging markets outside the U.S. and Europe. The company also plans to move its global headquarters to El Salvador, the first country to legalize Bitcoin (BTC).