Recent decisions by Anchorage Digital to cease support for three stablecoins have provoked a strong reaction in the cryptocurrency community.
Situation Overview
Anchorage Digital faced criticism from stablecoin issuer Agora after announcing it would discontinue support for USDC, AUSD, and USD0. Nick van Eck, the co-founder and CEO of Agora, claimed that the decision was based on "easily verifiable factual inaccuracies". He pointed out that Anchorage failed to disclose its ties with Paxos, which could potentially benefit from the removal of tokens issued by other platforms.
Response from Anchorage Digital
According to Rachel Anderika, head of global operations at Anchorage Digital, the decision to cease support is based on risk assessments. "Following our Stablecoin Safety Matrix, USDC, AUSD, and USD0 no longer meet Anchorage Digital's internal criteria," she stated. Anchorage has also introduced a new stablecoin safety matrix to simplify the evaluation of tokens against regulatory guidelines.
GENIUS Act and Its Implications
The GENIUS Act, which aims to regulate stablecoins in the US, has been approved by the Senate. Previously dubbed "Genius Bill as a Service" by Nick van Eck, the bill may change the dynamics surrounding stablecoins, considering depeg history and liquidity. Companies like Tether must also adapt to new regulatory requirements to remain competitive in the marketplace.
Anchorage Digital's decision to withdraw support for certain stablecoins raises questions about transparency and market ethics amid changing regulatory standards.
