Allaire of Circle Advocates for Regulatory Scrutiny of Dollar-Linked Stablecoins in U.S.

As stablecoin regulation looms, Circle's CEO Jeremy Allaire urges issuers of dollar-tied tokens to register within the U.S.

Jeremy Allaire, the CEO of Circle, appears to advocate for a controlled environment in stablecoin regulation. He suggested that issuers of dollar-pegged tokens should be required to register in the U.S. In an interview with Bloomberg, Allaire expressed concerns about stablecoin issuers based outside the U.S., stating "there shouldn't be a free pass."

"There shouldn't be a free pass, right? Where you can just ignore U.S. law and do whatever the hell you want wherever and sell into the United States."

Jeremy Allaire

Allaire's statements come as Senator Bill Hagerty recently put forth a framework for stablecoin issuers, and President Donald Trump pledged to establish the U.S. as a crypto hub. Circle's actions may potentially impact its main competitor and the largest stablecoin issuer by market capitalization, Tether, which recently relocated its headquarters to the Bitcoin-friendly nation of El Salvador.

"This is about consumer protection and financial integrity. 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."

Jeremy Allaire

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Paolo Ardoino, the CEO of Tether, did not publicly address Allaire's appeal but hinted in a Feb. 25 post on X that competitors were attempting to discredit his company.

"While our competitors' business model should be to build a better product and even bigger distribution network, their real intent is 'Kill Tether'. Every single business or political meeting that they have culminates with this intent." Paolo Ardoino

The discussion surrounding stablecoin regulation extends beyond the U.S. In July 2024, analysts at blockchain research firm Kaiko proposed that Europe's Markets in Crypto-Assets Regulation drove issuers to comply, favoring Circle at the expense of its competitors.

Ardoino criticized MiCA, arguing that its requirement for stablecoin issuers to maintain at least 60% of reserves in E.U. bank accounts poses financial risks, as deposits exceeding €100,000 are not insured.

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