PanamaTimes

Saturday, Apr 20, 2024

Circle CEO to lawmakers: Stablecoins need federal regulation

Circle CEO to lawmakers: Stablecoins need federal regulation

In the wake of FTX’s collapse that has shaken the crypto industry, Circle CEO Jeremy Allaire sent a letter to lawmakers urging them to take rapid action on regulating stablecoins.
“The events of recent days are a painful reminder that a lack of regulatory clarity drives activity offshore in a way that can harm U.S. consumers, investors, companies, and the country as a whole,” Allaire wrote in the letter addressed to House Financial Services Chair Maxine Waters (D-CA) and ranking member Patrick McHenry (R-NC) along with Chairman Sherrod Brown (D-OH) and ranking member Pat Toomey (R- PA) of the Senate Banking Committee.

“Congress should act now to pass comprehensive payment stablecoin legislation," he wrote.

The stablecoin issuer, which issues USDC, called on the leaders of the House Financial Services and Senate Banking Committees to work together to pass bipartisan legislation that would create a national framework for payment stablecoins and their underlying infrastructure as well as safeguards to ensure financial stability and to protect consumers.

Allaire also stressed the need for federal legislation for reserve, redemption, and disclosure requirements, and said stablecoins should be required to be backed, at par, by high-quality liquid assets held in segregated accounts within the U.S. financial system.

Allaire’s comments come as the House Financial Services Committee has stalled on bipartisan legislation to regulate stablecoins.

A bill being worked on by both Waters and McHenry would reportedly place a two-year ban on algorithmic stablecoins and would mandate a study from the U.S. Treasury on tokens like algorithmic stablecoin TerraUSD that crashed this spring. This summer, deliberations were held up over a provision on how to treat digital wallets.

On the Senate side, outgoing Sen. Pat Toomey has put forth draft legislation proposing a new regulatory framework for stablecoins that would subject them to new federal disclosure requirements. Toomey has proposed creating a new federal license to allow companies to issue stablecoins, while still allowing for the state-registered money transmitter status for many existing stablecoin issuers, or insured depository institutions to issue stablecoins.

Allaire said rules are needed as the stablecoin industry is moving from a “dial-up” phase, where payment stablecoins and blockchains have helped to facilitate the buying and selling of digital assets, to a “utility phase,” where stablecoins will be used for buying a cup of coffee to funding a new company.

“Reasonable, workable, and clear legislation can unleash new economic activity, offering businesses and consumers the necessary assurances that the value embedded in payment stablecoins is protected under U.S. law, while shielding consumers and markets from deleterious and irresponsible financial alchemy," Alaire wrote.

Allaire warned the consequences of inaction are significant, including hurting consumers, enabling continued regulatory arbitrage abroad, and stunting U.S. financial services growth.

“Some countries, notably China, are introducing top-down, highly centralized digital versions of their currency," Allaire wrote, "with the goal of outpacing the United States and replacing the dollar as the world’s reserve currency."
Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×