Circle CEO Jeremy Allaire recently spoke out against the U.S. Securities and Exchange Commission's (SEC) recent actions to regulate stablecoins, stating that stablecoins should not fall under the SEC's oversight. In an interview with Bloomberg on February 24th, Allaire argued that stablecoins pegged to the U.S. dollar, known as "payment stablecoins," should instead be regulated by banking regulators. He noted that this is the approach taken by governments around the world, including the U.S.
Allaire emphasized that not all stablecoins are created equal and that there are many variations in the market. However, he maintained that most regulators view stablecoins as a payment system rather than securities, indicating that they should not be subject to SEC regulation.
While Allaire opposes SEC oversight of stablecoins, he supports the agency's proposal to impose stricter regulations on cryptocurrency custody. He explained that qualified custodians can provide necessary control structures and bankruptcy protections, ensuring that assets are secure and protected against loss or theft.
Allaire's comments come after the SEC took action against stablecoin issuer Paxos and the TerraUSD stablecoin. There were also rumors that Circle had received a Wells notice from the SEC, which the company denied. Currently, Circle's USD Coin (USDC) is the second largest stablecoin with a market cap of $42 billion, following Tether's USDT with a market cap of $70 billion.
Allaire's views on stablecoin regulation align with those of SEC Commissioner Hester Peirce, who recently suggested that Congress should address the lack of legislation around crypto regulations and enforcement. Allaire believes that stablecoins should be regulated as payment systems by banking regulators rather than as securities by the SEC, highlighting the need for clear and consistent regulation across the industry.
Disclaimer:
GlobalStablecoins.com is an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. Don’t take it as investment advice. Speak to an advisor before you risk investing in an ICO, Cryptocurrencies, Cryptoassets, Security Tokens, Utility Tokens, Exchange Tokens, Global Stablecoins, Stablecoins or eMoney Tokens. GlobalStablecoins.com is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.
Affiliate Disclosure / Sponsored Posts:
If a Sponsored Post contains any mention of a crypto project, we encourage our readers to conduct diligence prior to taking further action. GlobalStablecoins.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
GlobalStablecoins.com may receive compensation for affiliate links. Should you perform activities in relation to an affiliate link, it is understood that some form of compensation might be made to GlobalStablecoins.com. For example, if you click on an affiliate link, and sign up and trade on an exchange, GlobalStablecoins.com may receive compensation.
Before you invest in Cryptoassets you should be aware of the following,
Cryptoassets are considered very high risk, speculative investments.
If you invest in Cryptoassets you should be prepared to lose all your money.
All Sponsored Posts are paid for by crypto projects, coin foundations, advertising firms, PR firms, or other marketing agencies. GlobalStablecoins.com is not a subsidiary of any marketing agency, nor are we owned by any crypto or blockchain foundation.
The purpose of offering Sponsored Posts to our advertisers is to help fund the day-to-day business operations at GlobalStablecoins.com.
If you come across a Sponsored Post which you believe is fraudulent and/or “scammy,” please contact us and we will perform an immediate investigation.
All Rights Reserved | GlobalStablecoins.com