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Date: 2025-02-26 11:44:02
Jeremy Allaire, the co-founder and CEO of Circle, a stablecoin issuer, asserts that businesses releasing digital tokens tied to the dollar should be registered within the United States.
"It shouldn't be a free ride, right?" Allaire expressed in an interview with Bloomberg. "Where you can just disregard U.S. law and do whatever you please wherever and sell into the United States." Circle's USDC is the second-most significant dollar-backed stablecoin by market capitalization, trailing only Tether's USDT.
Cryptocurrency has been a significant topic since the beginning of President Donald Trump's presidency. In January, he issued an executive order outlining specific actions, including one for the nation to proceed with a more crypto-friendly regulatory framework. In February, Tennessee Senator Bill Hagerty introduced a stablecoin oversight bill to establish a regulatory regime for U.S. dollar-backed coins.
"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," Allaire said.
Dante Disparte, Circle's Chief Strategy Officer & Head of Global Policy and Operations, echoed these sentiments.
"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 – no company that issues dollar stablecoins should get a free pass from safety and soundness rules and appropriate prudential supervision," Disparte told CoinDesk in a statement.
The stablecoin sector has a total market capitalization of $232 billion and serves as the foundation for cryptocurrency trading. Stablecoin tokens are often utilized in international money transfers. Companies such as PayPal plan to broaden their stablecoin operations.
Michelle Gill, the general manager of PayPal’s small business and financial services group, informed Bloomberg that the company intends to incorporate its PYUSD stablecoin, currently ranked 10th largest by market capitalization at CoinGecko, into more of its products in the coming months.
PayPal did not respond to CoinDesk's request for comment.