Call for Regulation: Circle’s Allaire Advocates for Dollar-Backed Stablecoin Registration
Jeremy Allaire, the co-founder of stablecoin issuer Circle, asserts that companies issuing digital tokens pegged to the dollar should be mandated to register within the U.S.
“It shouldn’t be a free pass, right?” Allaire commented during an interview with Bloomberg. “Where you can just ignore the U.S. law and go do whatever the hell you want wherever and sell into the United States.” Circle’s USDC ranks as the second-largest dollar-backed stablecoin by market capitalization, following Tether’s USDT.
Key Points:
- Allaire stressed that stablecoin issuers must comply with U.S. regulations.
- Recently, Senator Bill Hagerty introduced legislation aimed at establishing a regulatory framework for U.S.-backed stablecoins.
Allaire emphasized, “Whether you’re an offshore company or based in Hong Kong, if you want to offer your dollar stablecoin in the U.S., you should need to register in the U.S. just like we have to go register everywhere else.”
Echoing his sentiments, Dante Disparte from Circle stated, “All companies that issue dollar stablecoins - whether they’re startups or based outside the U.S. - should have the opportunity to register in the United States and compete on a level playing field.”
The stablecoin sector boasts a market cap exceeding $232 billion and is crucial for cryptocurrency trading and international money transfers. Companies like PayPal have expressed intentions to expand their stablecoin offerings.
Michelle Gill, PayPal’s general manager, mentioned the company plans to enhance the integration of its PYUSD stablecoin into more products soon.
