• Circle CEO Jeremy Allaire recently stated that stablecoins should not be regulated by the SEC.
• Allaire suggested that banking regulators, such as the US Federal Reserve Board or the Office of Comptroller of the Currency (OCC), would be more appropriate.
• The securities regulator recently issued a Wells notice to Paxos, Circle’s rival firm, informing the company of its intention to initiate enforcement actions.
Circle CEO’s Opinion on Stablecoins Regulation
Circle Internet Financial’s founder and CEO Jeremy Allaire recently shared his opinion on the Securities and Exchange Commission (SEC) and its role in regulating stablecoins in the United States. According to him, SEC is not suitable for this purpose and other banking regulators like US Federal Reserve Board or OCC should be responsible for this.
Circle’s USD Coin Circulation Supply
Circle is an issuer of world’s second-largest stablecoin USD Coin [USDC], which has a circulating supply of over $42 billion.
SEC Proposal to Include Virtual Currencies in Qualified Custodian Requirements
Allaire supported SEC proposal to include virtual currencies in assets subject to qualified custodian requirements. This will provide control structures and bankruptcy protection.
Growing Scrutiny of Stablecoins by Regulators Worldwide
Stablecoins have become increasingly popular but their regulatory status remains uncertain with many governments calling for stricter oversight.
Better Measures Proposed by Circle CEO
Allaire proposed better measures like including virtual currencies in assets subject to qualified custodian requirements instead of letting SEC regulate it.