Beautiful Virgin Islands

Tuesday, Jun 03, 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
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×