As the United States moves closer to introducing stablecoin legislation, Circle CEO Jeremy Allaire is urging tighter regulatory oversight, calling for all issuers of dollar-pegged digital assets to be registered within the United States.
In an interview with Bloomberg, Allaire voiced concerns about stablecoin issuers operating outside the U.S. while continuing to serve American customers. He argued that such companies should not be allowed to circumvent U.S. regulations.
“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,”
Allaire stated.
His remarks come as Senator Bill Hagerty pushes a stablecoin regulatory framework aimed at fostering innovation while maintaining financial oversight. If enacted, the legislation could have major implications for Tether, the world’s largest stablecoin issuer, which operates outside the U.S. regulatory framework.
Allaire stressed the need for consistent regulatory standards, highlighting that Circle complies with various international regulations and arguing that other issuers should do the same.
“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,”
he said.
While Tether CEO Paolo Ardoino has not directly responded to Allaire’s comments, he appeared to address the issue in a February 25 post on X, accusing competitors of attempting to undermine 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’,”
Ardoino wrote.
“Every single business or political meeting that they have culminates with this intent.”
Meanwhile, the push for regulatory clarity comes as Circle continues to expand the reach of USDC, its stablecoin product, which is the second largest behind Tether’s USDT. The company recently announced that USDC is now natively available on the Sui network. Previously, Sui users could only access a bridged version of USDC (wUSDC) via Wormhole, a cross-chain protocol. Circle noted that its decision to issue native USDC on Sui was influenced by the growing demand for bridged assets and Wormhole’s role in expanding its adoption.
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