US Senator asks about Coinbase, Gemini, Binance, Tether’s consumer protection

US Senator Sherrod Brown has sent a letter to exchanges and issuers of stablecoins, including Coinbase, Gemini, Binance and Tether, asking how they protect consumers and investors.

Concerns about stablecoins

U.S. Senator Sherrod Brown (D-Ohio), chairman of the U.S. Senate’s Banking, Housing and Urban Development Committee, announced Tuesday that he had sent letters to multiple exchanges and stablecoin issuers.

The companies that received the email included Coinbase, Gemini, Paxos, Trusttoken, Binance.us, Center, and Tether.

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

“Senator Brown highlighted the difficulties consumers and investors can face in understanding how stablecoins work and the potential risks they pose, citing complex business conditions. Complexes that many companies hide.”

The Senator wrote in one of his letters:

“I have significant concerns about the non-standardized terms that apply to exchanging certain stablecoins, how those terms differ from traditional assets, and they may not be consistent across platforms. Digital asset trading platform.”

The Senator claimed that “buying stablecoins through an exchange may not give customers the same rights and benefits as buying them directly from an issuer”.

In addition, “customers can have different rights depending on the number of stablecoins they own or have traded”.

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