June 3, 2023

SEC is not the Right Regulatory Agency for Stablecoins, Says Circle CEO

The grip of the SEC on the cryptocurrency community is increasing. Speaking on the matter, CEO and founder of DeFi enterprise Circle, Jeremy Allaire, has suggested that SEC should not regulate stablecoins. His firm is responsible for issuing the second-largest and most popular stablecoin called USDC.

He has shared an interesting take on the treatment of stablecoins operating in the USA from the perspective of the Securities and Exchange Commission. He was recently invited for an interview with Bloomberg.

Speaking to the media house, he claimed that regulating stablecoins does not seem like a correct move on part of the SEC.

To make his point, Allaire shared the treatment of foreign governments in handling the native stablecoin projects under their jurisdiction. He said that in most countries stablecoins are used as part of the payment systems and they are also connected to the banking regulatory network.

He does not seem to take an issue with the idea of regulatory intervention. However, he claims that rather than SEC products like stablecoins should be assigned under the charge of the Federal Reserve or Office of Comptroller of Currency in the USA.

SEC has prosecuted several cryptocurrency enterprises such as Paxos, BUSD, Kraken, Terra, and Ripple Labs.

Stablecoins as Payment Systems

On account of the latest exploits of the SEC, on crypto staking and prosecuting NFTs as unregistered securities. There are many in the financial sector that has called out the US regulator for operating outside of their congressional jurisdiction.

Allaire has maintained that cryptocurrencies are viewed as alternative payment systems rather than securities among the stakeholders.

Speaking on the matter, the CEO of Circle has maintained that other cryptocurrencies can also be regulated for ensuring proper custodial requirements.

He suggested that by using such regulatory measures the dangers of bankruptcy and controlled growth of cryptocurrency enterprises such as exchanges can be ensured.

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