Circle CEO Jeremy Allaire published a blog post on June 12 of testimony he plans to present to Congress regarding the design of stablecoin regulation.
Allaire pushes for pro-US stablecoin rules
Allaire said in his prepared remarks:
“The stablecoin bill is a crucial piece of legislation that should be the first step in creating a regulatory framework that creates the conditions for a vibrant and secure digital asset market.”
His comments pertain to a two-part draft discussion bill titled “a bill to provide for the regulation of payment stablecoins and for other purposes.”
Allaire said the bill, if passed into law, would provide access to the US dollar while ensuring security and allowing for competition.
He said the proposed legislation would provide strong regulation but suggested improvements. He pushed for federal enforcement of standards, called for easier access to Federal Reserve account services for stablecoin issuers, and said stablecoin intermediaries should be required to hold stablecoins with chartered qualified custodians.
Allaire also suggested that the bill should include criminal — not civil — penalties for parties issuing counterfeit stablecoins and digital dollars.
CEO warns of loss of US dominance
Allaire said the US dollar is declining in global foreign reserves while alternative digital payment technologies such as the Chinese digital yuan are on the rise. As such, Allaire said the US needs to take action to keep the dollar competitive.
He added that other jurisdictions, including the EU, Japan and Hong Kong, are legislating for US-issued stablecoins. He urged US lawmakers to lead stablecoin regulation rather than allow foreign countries to do so.
Allaire noted that his company, Circle, has obtained licenses and oversight in the US, Europe and Asia for its proprietary USDC stablecoin.
Allaire will present his remarks before Congress on June 13. Other notable members of the crypto industry, including Emin Gün Sirer, founder and CEO of Ava Labs, and Aaron Kaplan, founder and co-CEO of Prometheum, will also be in attendance.
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