Beautiful Virgin Islands

Monday, Oct 06, 2025

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

Beautiful Virgin Islands
0:00
0:00
Close
Munich Airport Reopens After Second Drone Shutdown
France Names New Government Amid Political Crisis
Trump Stands Firm in Shutdown Showdown and Declares War on Drug Cartels — Turning Crisis into Opportunity
Surge of U.S. Billionaires Transforms London’s Peninsula Apartments into Ultra-Luxury Stronghold
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Jeff Bezos Calls AI Surge a ‘Good’ Bubble, Urges Focus on Lasting Innovation
Japan’s Ruling Party Chooses Sanae Takaichi, Clearing Path to First Female Prime Minister
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Taylor Swift’s ‘Showgirl’ Launch Extends Billion-Dollar Empire
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
Disney Reinstates ‘Jimmy Kimmel Live!’ after Six-Day Suspension over Charlie Kirk Comments
U.S. Prosecutors Move to Break Up Google’s Advertising Monopoly
×