Circle CEO says stablecoins pegged in US dollar should be registered within the US
Circle cofounder Jeremy Allaire has urged stablecoins backed by US dollars to be registered within the United States. This is in response to lawmakers introducing new legislation on digital asset.
Allaire made this statement in a Bloomberg interview, on February 26. This was in the midst of growing discussions in Washington about stablecoin oversight.
The demand for registration is in line with the efforts of some policymakers who want to provide stablecoins issuers a legal framework that is clear, especially as the market for digital assets pegged to dollars expands.
Legislative efforts
Stablecoins are a key component of digital asset markets. They serve as a bridge to traditional finance and cryptocurrency.
There is still a lot of regulatory uncertainty, including questions about consumer protections, financial stability, and reserve backing.
Bill Hagerty introduced a stablecoin regulatory framework bill in Tennessee earlier this month. The bill is expected to be one of the very first crypto-related issues that President Donald Trump will address during his second term.
Trump has shown his support to position the US as the leader in the crypto-industry, paving the way for regulatory changes that could affect stablecoin issues like Circle.
The industry pushes for clarity
Circle’s USDC is the second-largest stablecoin by market capitalization, following Tether Limited’s USDT. The firm has established itself as more transparent than its competitors and compliant to regulatory standards.
The company has been advocating for a legal framework which would allow stablecoins operate within the US Financial System rather than regulatory gray zones. Some argue, however, that this could hinder innovation and competition on a global scale.
Allaire’s request for US registration is in line with industry efforts to build trust and stability on the market. Some lawmakers and regulators are concerned about the potential impact of stablecoins on financial stability. Others argue that issuers who are well regulated could improve payment efficiency and innovation.
Stablecoins are now a central part of the cryptocurrency ecosystem. As such, the ongoing debate on their regulation will shape the future digital finance in the U.S. Hagerty’s Bill may gain traction, or it could undergo significant revisions. But the drive for clarity on stablecoin supervision is crucial for both industry and policymakers.
