Circle Co-Founder Thinks Stablecoin Issuers Worldwide Should Register With US Authorities
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Jeremy Allaire, the co-founder of Circle, recently stated that he thinks stablecoin issuers from around the world should be required to register with the US authorities. Not only that, but he believes that this should be a requirement regardless of where they operate.
According to him, companies that issue USD-pegged stablecoins like USDC should not be allowed to bypass US regulations, especially if they are still providing services to US users. These comments came after several US lawmakers led by representatives Bryan Steil and French Hill proposed a bill that would establish a formal regulatory framework for stablecoins.
Furthermore, the Trump administration also has its own plans to regulate the stablecoin market. David Sacks, Trump’s so-called Crypto Tzar, suggested that bringing the assets under the country’s oversight could be good for improving the dollar’s influence on a global scale.
Circle Might Overtake Tether Soon
The new development is particularly difficult for Tether, the company that issued the world’s largest stablecoin, USDT. Tether is under a lot of pressure now, and its CEO, Paolo Ardoino, stated on social media that both the political forces and competitors are actively working to push the company out of the market.
Ardoino accused Tether’s rivals of focusing more on killing Tether than improving their own products. The project was already excluded from the list of allowed stablecoin issuers under the EU’s MiCA framework, and multiple major crypto exchanges, such as Crypto.com and Kraken, are making preparations to delist USDT.
All of this will directly benefit Circle and is USDC, currently the world’s second-largest stablecoin. Despite maintaining friendly regulations with the regulators, USDC is still not the first choice of the majority of crypto users, but this could change in the coming months if Tether loses its availability.
Circle will be the top choice for financial institutions, however, as it is regulated, which would make for an easier integration.
