Circle CEO, Jeremy Allaire, has announced that he will be giving testimony to Congress on June 13th regarding the draft stablecoin regulation. Allaire claims that the stablecoin bill is a crucial piece of legislation that should act as the first step in creating a regulatory framework that supports a vibrant and safe digital assets market.
Proposed Bill
The proposed legislation is a bipartisan discussion draft bill that aims to provide regulation for payment stablecoins and other related purposes. Allaire believes that if the draft discussion bill becomes legislation, it will provide access to the US dollar while ensuring safety and allowing for competition. The proposed legislation is expected to provide strong regulation, but Allaire suggests that improvements need to be made.
Allaire’s Suggestions
Allaire has suggested that the proposed legislation should contain federal enforcement of standards, making access to Federal Reserve account services easier for stablecoin issuers, and requiring stablecoin intermediaries to hold stablecoins with chartered qualified custodians.
Additionally, Allaire believes that the bill should contain criminal penalties instead of civil penalties for parties that issue counterfeit stablecoins and digital dollars. The US dollar is declining in dominance in global foreign reserves, and alternative digital payment technologies, such as China’s digital yuan, are on the rise. Therefore, Allaire believes that the US must act to keep the dollar competitive.
Allaire has also noted that other jurisdictions, including the EU, Japan, and Hong Kong, are creating laws for stablecoins issued in the US. He urges US lawmakers to lead the stablecoin regulation instead of allowing foreign countries to do so.
Circle’s Licenses and Supervision
Allaire notes that Circle, his company, has obtained licenses and supervision in the US, Europe, and Asia for its USDC stablecoin. Circle is a regulated financial technology company that provides payment and treasury infrastructure for internet businesses.
Allaire’s testimony before Congress on June 13th is an important step in creating a regulatory framework for stablecoins in the US. The proposed legislation is expected to provide strong regulation, but Allaire suggests that improvements need to be made. He believes that the US must act to keep the dollar competitive and lead the stablecoin regulation instead of allowing foreign countries to do so.