Circle CEO addresses risks for crypto companies over their high compliance nature in the US
Jeremy Allaire shared his opinion on the current situation of the crypto sector amid rapid regulatory action on the crypto companies.
USDC is a second-ranked stablecoin in the crypto sector by trade volume. Circle is the backend manager company behind USDC stablecoin, maintaining the value of each USDC equal to $1. This company is highly regulated in the United States, which helps this company to maintain a better level of trust among the USDC users.
On 23 March 2023, Jeremy Allaire, the CEO of Circle, took to Twitter to share his personal opinion on the current situation of this innovative sector and noted that the situation is full of deep anxiety for the crypto companies.
Jeremy noted that the dependency of the crypto sector dominantly on the US dollar-pegged stablecoins, US economy, & US financial system is now risky.
The Circle CEO noted that huge anxiety & fear is spreading across the crypto sector amid a high-level US banking crisis and aggressive enforcement action on the crypto companies.
The main issue, on which Circle CEO dragged attention, is highly regulated crypto companies in the US. He noted that the majority of the US-regulated crypto companies are feeling unsafe due to concerns about assets being stranded.
Further Circle CEO requested US policymakers to take the next steps more carefully, as recent aggressive enforcement actions taken by the US authorities forced the crypto companies to shift their operations under the jurisdiction of other crypto-friendly countries.
According to Jeremy, he never saw such a highly pressurised situation in the crypto sector over the last 10 years and also noted that such a situation may drag the US position very far from the leadership of this innovative sector.
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