Do Kwon

For USDC, it's very easy for the US government to shut down USDC, by threatening the bank balance and then telling Circle to freeze certain accounts or reverse transactions, which they've done before historically.

for tether and USDC, for every dollar stable coin that's issued, you keep a dollar's worth of balance in a bank account. And it turns out, especially with the heightened regulatory attention that's coming to stable coins, that those bank balances could easily be censored, or, you know, simply, you know, stolen away from the issue or some other third party.