U.S. Senator Sherrod Brown has written to cryptocurrency exchanges and stablecoin issuers, including Coinbase, Gemini, Binance, and Tether, asking them how to protect consumers and investors. “I am very concerned about the non-standardized terms that apply to the redemption of certain stablecoins,” the senator said.

U.S. senators express concern about stablecoins

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

The recipients of his letters include Coinbase, Gemini, Paxos, Trusttoken, Binance.us, Centre and Tether.

The senator asked these crypto companies how they “protect consumers and investors from the risks highlighted in the recent report of the President’s Financial Markets Working Group.”

The announcement added: “Senator Brown highlighted the difficulties that consumers and investors may face in understanding how stablecoins work and their potential risks, and cited the complex terms and conditions that many companies hide in the detailed rules.” This A senator wrote in one of his letters:

I am very worried about the non-standardized terms that apply to the redemption of specific stablecoins, how these terms are different from traditional assets, and that these terms may be inconsistent between digital asset trading platforms.

The senator asserted that “purchasing stablecoins through trading platforms may not provide customers with the same rights and rights as buying directly from the issuer.”

In addition, he pointed out: “Customers may have different rights depending on the number of stablecoins they own or trade.” Senator Brown also asked six other questions in his letter. here.

What do you think about Senator Sherrod Brown asking how cryptocurrency exchanges and stablecoin issuers can protect consumers and investors? Please let us know in the comments section below.

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