Circle’s Allaire Urges US Oversight for Dollar-Pegged Stablecoins

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In a delightful twist of fate, our dear friend Jeremy Allaire, the esteemed chief executive of Circle, has taken it upon himself to advocate for a rather quaint notion: that issuers of dollar-pegged tokens ought to register in the good ol’ U.S. of A. It appears that stablecoin legislation is on the horizon, and Allaire is waving his metaphorical flag with gusto! 🇺🇸

In a tête-à-tête with Bloomberg, Allaire, with all the charm of a well-bred Englishman, expressed his concerns regarding those cheeky non-U.S. stablecoin issuers. He declared, “There shouldn’t be a free pass!” as if he were admonishing a wayward schoolboy. One can almost hear the clinking of teacups in the background. ☕️

“It shouldn’t be a free pass, right? Where you can just ignore the U.S. law and go do whatever the hell you want wherever and sell into the United States.”

— Jeremy Allaire

As if the plot couldn’t thicken any further, Senator Bill Hagerty has recently proposed a framework for stablecoin issuers, while President Donald Trump has promised to transform the U.S. into a veritable crypto hub. One can only imagine the ruckus this might cause for Tether, Circle’s main rival, which has gallantly relocated its headquarters to the sunny shores of Bitcoin-friendly 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

Meanwhile, Tether’s own Paolo Ardoino, in a rather cryptic manner, has chosen not to directly address Allaire’s fervent call. Instead, he hinted at a conspiracy afoot in a post on X, suggesting that competitors are plotting to undermine his noble enterprise. Oh, the drama! 🎭

“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 debate over stablecoin regulation, it seems, is not confined to the U.S. shores. Analysts at the blockchain research firm Kaiko have suggested that Europe’s Markets in Crypto-Assets Regulation has sent issuers into a frenzy to comply, much to Circle’s advantage and at the expense of its rivals. One can only hope they have their umbrellas ready for the impending storm! ☔️

Ardoino, not one to shy away from a good old-fashioned critique, has taken aim at MiCA, arguing that its requirement for stablecoin issuers to hold at least 60% of reserves in E.U. bank accounts poses financial risks. After all, deposits exceeding €100,000 are not insured, and who wants to be caught in a pickle? 🥒

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2025-02-26 10:58