Circle (USDC) exec believes Stablecoins regulation law will come within 2024
Jeremy Allaire shared his opinion on the current crypto leadership in the US and said that he believes the regulatory framework for the stablecoins firms will come soon or later this year.
Circle is a popular crypto firm which is responsible for the financial management of USDC stablecoin, a second-ranked stablecoin by market cap. In 2023, Circle went under multiple management control changes, making Circle’s financial activities better & sustainable for the better future.
On 15 Jan 2024, In an interview with CNBC media at the World Economic Forum’s annual meeting in Davos (Switzerland), Circle CEO Jeremy Allaire said that there are huge chances that the American policymakers will bring a regulatory framework for the stablecoin firms this year.
Jeremy dragged attention toward the circulation of US dollar-pegged stablecoins in non-US jurisdictions and also the regulatory rules by the corresponding regulatory bodies.
Jeremy believes that regular efforts toward the US dollar-pegged stablecoins in the non-US jurisdiction will create a type of pressure on the American regulatory bodies to create rules for the stablecoins firms.
“Other governments are regulating dollar-digital currencies before the United States. So I think there is a very strong desire to act and assert U.S. leadership and get the right consumer protections involved,” Allaire said.
Circle Chief Strategy Officer Dante Disparte also said that he is optimistic that payments stablecoin policy is a possibility early in the new year.
Clarity for Payment Stablecoins Act was proposed by the U.S. Representative Patrick McHenry. This act aims to provide proper clarity to the stablecoin companies to use Stablecoins in the payment services just like traditional financial systems.
In March 2022, this Act was introduced by Senator Bill Hagerty into Congress.
It is worth it to note that in early 2023, the majority of the crypto companies were in full tension over their future business in the US jurisdiction because of the hostile regulatory environment.
In Q1 & Q2 2023, many crypto companies were sued by the United States Securities and Exchange Commission (SEC) body. The legal suits against crypto companies were on behalf of the Security Act, which was made four decades ago before the origin of the crypto sector.
