Circle CEO Jeremy Allaire printed a June 12 weblog publish that includes testimony that he plans to current to Congress relating to draft stablecoin regulation.
Allaire urges for pro-U.S. stablecoin guidelines
Allaire stated in his ready remarks:
“The stablecoin invoice is an important piece of laws that needs to be step one in making a regulatory framework that builds the circumstances for a vibrant and secure digital belongings market.”
His feedback relate to a bipartisan draft dialogue invoice titled “a invoice to supply for the regulation of cost stablecoins, and for different functions.”
Allaire stated that the draft dialogue invoice, if it turns into laws, would supply entry to the U.S. greenback whereas making certain security and permitting for competitors.
He stated that the proposed laws would supply sturdy regulation however advised enhancements. He urged for federal enforcement of requirements, referred to as for simpler entry to Federal Reserve account companies for stablecoin issuers, and stated that stablecoin intermediaries needs to be required to carry stablecoins with chartered certified custodians.
Allaire additionally advised that the invoice ought to include prison — not civil — penalties for events that concern counterfeit stablecoins and digital {dollars}.
CEO warns of U.S. dropping dominance
Allaire stated that the U.S. greenback is declining in dominance in international international reserves, whereas different digital cost applied sciences corresponding to China’s digital yuan are on the rise. As such, Allaire stated that the U.S. should act to maintain the greenback aggressive.
He added that different jurisdictions together with the EU, Japan, and Hong Kong are creating legal guidelines for stablecoins issued within the U.S. He urged U.S. lawmakers to steer stablecoin regulation as a substitute of permitting international nations to take action.
Allaire famous that his firm, Circle, has obtained licenses and supervision within the U.S., Europe, and Asia for its personal USDC stablecoin.
Allaire will current his remarks earlier than Congress on June 13. Different notable crypto business members together with Emin Gün Sirer, founder and CEO of Ava Labs, and Aaron Kaplan, founder and Co-CEO of Prometheum may also attend.
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