Circle CEO Predicts US Stablecoin Legislation Amid Criminal Activity Concerns
Summary:
Circle CEO Jeremy Allaire predicts the possible enactment of stablecoin legislation in the US within the year. Allaire has observed positive strides in US policy, hoping this bipartisan-supported development will pave the way for future stablecoin regulatory measures. Notably, the Clarity for Payment Stablecoins Act and the Stablecoin Transparency Act are key bills awaiting review. Despite the optimism, there remain concerns about the potential utilization of stablecoins in criminal activities.
The CEO of Circle, Jeremy Allaire, is optimistic that a long-awaited stablecoin law will be enacted in the United States within the current year. Allaire shared this belief during a CNBC interview on January 15, at the annual gathering of the World Economic Forum in Davos, Switzerland. He noted the global progress of digital dollars and how other nations are on the forefront of regulating these digital currencies ahead of the United States, indicating a necessity for US leadership and consumer protection in this sector.
Allaire, who manages the company behind the USD Coin (USDC) stablecoin, remarked on the recent legislative, judicial, and regulatory advancements he has observed in the country. "There's a good chance for the emergence of payment stablecoin policy early this year, thanks to increasing bipartisan support," Circle's Chief Strategy Officer and Global Head of Public Policy, Dante Disparte, told CNBC.
The Clarity for Payment Stablecoins Act, proposed by US Representative Patrick McHenry, stands among the prominent stablecoin bills set for review by the House of Senate. Its primary objective is to equip stablecoin issuers with a regulatory framework akin to that upheld by traditional financial institutions. On March 31, 2022, Senator Bill Hagerty also introduced the Stablecoin Transparency Act to Congress.
In the past years, Circle has been a vigorous proponent of stablecoin legislative reform. Starting late in 2021, the company partnered with strategic consulting firm Invariant in its lobbying efforts, spending an estimated total of $760,000 according to ProPublica.
In light of the recently approved and initiated spot Bitcoin exchange-traded funds, Allaire expects more regulatory progress on the horizon, heralding 2024 as a significant year for the digital currency market.
Nevertheless, Disparte pointed out that lawmakers may continue to harbor concerns about the potential use of stablecoins in criminal activities, referencing instances of digital assets being used to fund terrorism and illicit drug trafficking. Without adequate mitigations in place, this would pose a detriment to national interests and economic stability.
Published At
1/16/2024 8:07:49 AM
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