Circle has approved the regulation of stablecoin issuers as banks

Such an initiative was taken by the administration of US President Joe Biden

13.11.2021 - 09:30

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What’s new? Circle company, the main operator of the USDC stablecoin, has supported the idea of the administration of US President Joe Biden to regulate stablecoin issuers. It consists in monitoring them as banking organizations, Yahoo Finance reports.

Material on the Yahoo Finance website

What does the Circle CEO say? The Biden administration's initiative is significant progress in the development of the stablecoin sector, according to CEO Jeremy Allaire. He believes that large banks do not currently have advantages as possible issuers of stablecoins. For that, the CEO added, financial institutions lack the infrastructure and understanding of the asset.

Allaire stressed that Circle has already announced a restructuring into a “commercial cryptocurrency bank with full redundancy.” The company is currently negotiating with regulators but has not applied for registration yet.

What had happened before? In early November, the US President's Working Group on Financial Markets (PWG) presented a report in which it listed the risks associated with stablecoins and called for equating coin issuers to banks.

Link to the report

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