The chair of the US Senate Banking Committee, Sherrod Brown, urged the leadership of Circle, Coinbase, Centre, Gemini, TrustToken and Binance.US to disclose information about their stablecoin-related business by December 3. Copies of the letters were obtained by The Block.
The senator asked to spell out clearly and plainly the processes for issuing and redeeming stablecoins, and to provide details of special arrangements with trading platforms that interact with them.
Brown has not yet sent a similar request regarding Tether Limited, though screenshots bearing its contents have begun circulating on social media.
“Active use of stablecoins and their greater role in conducting transactions with digital assets underscores the need for a deeper understanding of the core operations and limitations of USDC,” — stated in the letter by Circle CEO Jeremy Allaire.
Brown cited the recent report of the President’s Working Group on Financial Markets under the US president. The report lists risks associated with stablecoins and recommends treating asset issuers as banks.
Back in November, Circle, the operator of USDC, backed the Biden administration’s plan to regulate stablecoin issuers as banking institutions.
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