Market

USDC issuer Circle supports proposal to regulate stablecoin issuers as banks

Stablecoin issuers like Tether (USDT) and USD Coin (USDC) may soon have to be subject to the same regulations as banks, but that doesn’t seem to stop the Circle CEO’s fear of USDC issuers.

In relation to the Biden government’s proposal to create bank-like regulation for stablecoin issuers, Circle CEO Jeremy Allaire spoke out in favor of the proposal. He stressed that the purpose of the proposal is to regulate dollar-denominated stablecoin issuers in the U.S. financial system, as federal banks at the Federal Reserve have made significant advances in industry growth.

Allaire USDC noted that the current moves would upgrade existing regulations that focus on money transfers “to a much more basic infrastructure that is at the core of the future of banking and capital markets.”

“There is a real finding that these payment stablecoins can grow relatively quickly on an internet scale as they grow,” commented Allaire. As the stablecoin market grows with hundreds of billions in circulation and trillions of transactions, the risks to financial markets and financial stability become much more significant, he added.

Related: CoC Hsu rights: More crypto regulations needed

As Cointelegraph reported, the Biden government’s proposal aims to create a new “charter for special purposes” for stablecoin issuers that puts them in the same category as banks. Allaire believes that the details of a banking charter for a cryptocurrency company need to be discussed from time to time with both the FDIC and other agencies that oversee the banks.

Stablecoins have become a focal point for regulators. In September, the US Treasury Department held several meetings to examine the risks of stablecoins to users, markets, or the financial system.

.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Gate.io Launches USDE Financial Products with Annualized Returns of Up to 54%, Ushering in a High-Return Era for Stablecoin Investments

Nov 18th, Panama - Gate.io, a global leader in digital asset trading, has officially unveiled…

37 minutes ago

Bitdeer Convertible Notes Worth $360 Million Offered for Expansion Efforts

The Bitdeer convertible notes offer a 42.5% conversion premium, allowing conversion into cash with the…

1 hour ago

Sui Foundation Enters into Strategic Partnership with Franklin Templeton Digital Assets

Grand Cayman, Cayman Islands, 22nd November 2024, Chainwire

2 hours ago

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

3 hours ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

4 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

5 hours ago

This website uses cookies.