Circle CEO Jeremy Allaire is advocating for mandatory registration for all stablecoin issuers in the US. He believes this will enhance consumer protection and financial stability. His stance comes as US regulators seek clearer rules for digital currencies.
Tether, the largest stablecoin issuer, faces scrutiny as regulatory discussions intensify. The company’s Bitcoin holdings and business model may struggle under stricter regulations. US financial authorities, including the Federal Reserve and the Commodity Futures Trading Commission, are developing proposals with bipartisan support in Congress.
Allaire, who co-founded Circle and issues USD Coin (USDC), stresses the need for clear regulations. He argues that any company offering a US dollar-pegged stablecoin should register in the US, regardless of its location. He stated, “It’s about protecting consumers and maintaining financial integrity.”
Regulatory efforts are gaining momentum. Senator Bill Hagerty has introduced a bill to create a legal framework for stablecoins, which may be one of the first crypto policies considered under the Trump administration. Allaire insists that stablecoin issuers should not evade US regulations while serving American customers.
Tether recently moved its headquarters to El Salvador and has faced criticism for its transparency. Tether’s CEO, Paolo Ardoino, responded to claims that other crypto firms are lobbying against Tether. He suggested that some competitors focus more on undermining Tether than on improving their products.
A significant part of Tether’s reserves is managed by Cantor Fitzgerald, whose former CEO is now the US Secretary of Commerce. This connection raises concerns about how regulatory decisions might affect Tether.
The Federal Reserve believes stablecoins could enhance the US dollar’s global presence. Fed officials argue that well-regulated stablecoins could benefit the US economy. Meanwhile, Democratic Representative Maxine Waters has introduced a bipartisan bill for stablecoin regulations.
As US lawmakers push for a structured regulatory framework, the debate over oversight continues. Circle’s call for mandatory registration highlights the growing importance of regulatory compliance in the digital asset market.
