Circle CEO allows the possibility of passing laws to regulate stablecoins in the United States this year

Last year, the bill to regulate payment stablecoins was approved by the specialized committee of the lower house of Congress

16.01.2024 - 08:10

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3 min

What’s new? Circle CEO Jeremy Allaire has noted that countries around the world have become more active in developing crypto regulations, and the United States is likely to introduce a regulatory framework for stablecoins as early as this year. In his opinion, not only the presidential administration, the Federal Reserve, and the Treasury Department, but also members of both houses of Congress, both Republicans and Democrats, are determined to move forward in this area.

CNBC’s material

What else is known? Speaking at the World Economic Forum in Davos, Allaire emphasized that digital dollars are emerging around the world, and some governments are overtaking the US in adopting a legal framework for such assets. In this regard, he said, the US authorities are determined to take decisive action to assert the country’s leadership and ensure consumer protection.

Previously, Allaire already stated the urgent need to introduce regulation of stablecoins to preserve the dollar’s status as the world’s reserve currency.

PwC: 42 countries have tightened or started developing crypto regulations since the beginning of the year

Work is underway in four areas, including coin listing rules and FATF compliance

Last July, the House Financial Services Committee approved a bill on payment stablecoins that proposes to regulate them similar to traditional financial companies. It has now been referred to the full House of Representatives for consideration.

Later, the Federal Reserve Banks of Boston and New York called stablecoins a source of financial instability, and the Treasury Department allowed the possibility of a ban on foreign issuers of such assets.

US-based Circle issues USDC, the second most capitalized stablecoin in the cryptocurrency market after Tether’s USDT. As of January 16, USDC is in seventh place in the overall cryptocurrency ranking with a value of $25,6 billion; it has fallen more than 46% since the beginning of last year.

That said, the company has recently reapplied to go public on the US stock exchange, this time through an initial public offering (IPO). In 2022, it tried to go public on the NYSE through a merger with a special purpose acquisition company (SPAC).

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