For the CEO of Circle, The rapid adoption of stablecoins raises the need to regulate responsible companies, especially due to the large adoption seen in recent times.
The issuing company of the stablecoin USD Coin (USDC), Circle, He openly expressed his support for the proposal presented by the Presidential Task Force on Financial Markets, which proposes to effectively regulate cryptocurrency issuing companies linked to fiat currencies, thereby promoting greater growth for this ecosystem.
This was indicated by the CEO of Circle, Jeremy Allaire, who during an interview for the medium Yahoo! Finance He assured that it was imperative to regulate companies that issued their own stablecoins, because the growing adoption of these cryptocurrencies could lead to an increasingly frequent use in various sectors.
In this regard, Allaire commented:
“We support this recommendation. We believe this is significant progress for this industry. “
The proposal that supports Circle
As such, the proposal that would be endorsing the team of Circle It is the fact that companies that issue stablecoins are regulated in the same way that banks are currently regulated. This measure was presented by the Working Group on Financial Markets, which extended said recommendation to US Congress
The idea behind this proposal is precisely to effectively address this industry, thereby minimizing the risks of stablecoins attacking the US financial system and the sovereignty of its local currency.
It is worth noting that in the past, executives of the SEC, the EDF and other government agencies highlighted the imperative need to effectively regulate the stablecoin space, since these currencies due to their properties could generate certain inconveniences for the local economy, even more so if these assets capitalize on greater adoption among residents, companies and businesses along the way. throughout the national territory and internationally.
The recommendation issued by the group invites legislators to establish laws with which banks under the supervision of the FDIC have the right to issue stablecoins in the future, which would also open a possibility for financial sector entities to also have contact with these technologies.
In addition to expressing his agreement with the aforementioned, Allaire also highlighted that the amount of stablecoins currently in circulation and the volumes of transactions do imply a risk for the financial ecosystem, especially in light of the projections for the coming years.
Even though Circle nor the consortium Center have submitted applications to become banks, if they would be considering availing themselves of the supervision of the FDIC preparing for an eventual regulation involving said body.
In relation to this, Allaire clarified that Circle is in talks precisely about this possibility, and indicated that they expect “Be a process in which they can work together with regulators.”
Version by Angel Di Matteo / DailyBitcoin
Picture of Unsplash