USDC issuer supports the proposal to regulate stablecoin like Banks

USDC issuer company Circle showed his positive take on the regulation proposal on stablecoins companies like Banks. 

The firms, which are operating their stablecoins in the crypto market will operate under the compliance and guidelines of the government authorities just like Banks are doing their work. But probably, Circle company- USDC issuer- will not take any tension. 

Jeremy Allaire- CEO of Circle- took the reference of the proposal suggested by the Biden administration and said that it is just an indication of the growth of the industry. 

Recently the Biden administration proposed an idea to regulate the stablecoins operations. According to Biden’ administration, there should be rules and guidelines on the stablecoins issuer Companies just like Banks. Circle CEO is showing a positive stance on this proposal. 

Circle CEO asserted that new regulation will be based upon the current situation and further continues 

“..to a much more fundamental infrastructure at the core of what potentially the future of banking and capital markets look like.”

Allaire also noted that Stablecoins are better as per internet need because on the internet they can grow at a better scale. And also noted that when the future market will facilitate hundreds of billions & trillions of transactions then in that situation there will be a real risk to the financial stability, so regulation on such things are important. 

Stablecoin regulation: An important need 

Besides crypto, global regulators are worried about the increasing adoption of the stablecoins market. Most of the central banks’ authorities believe that high scale adoption will introduce a big challenge and cause stability issues in the traditional financial system. 

However, US regulators are taking this matter much seriously but what about the other countries. Will other countries bring separate & different legislation for these stablecoins companies or will follow the regulatory steps of the US regulators.

Read also: Circle set its sights on thriving Asian crypto markets