Circle CEO Jeremy Allaire had a agency warning for policymakers on Thursday: Defend stablecoins or the US greenback will lose international dominance. “If the greenback is to stay the world reserve foreign money… then we have to construct belief in digital {dollars} and regulate stablecoins immediately,” mentioned Allaire in a shiny video advert shared on Twitter.
His assertion is certainly one of many requires Congress to think about the second because it prepares to vote on stablecoin laws nonetheless being drafted and revised by the Home Monetary Companies Committee (HFSC). Democrats and Republicans have butted heads on the difficulty, and are slowly reaching a compromise on how a lot authority the Federal Reserve ought to have in overseeing stablecoin issuers, amongst different issues.
Circle is the issuer of 1 such token: USD Coin (USDC), the second largest stablecoin by market cap. Nevertheless, with the U.S. Securities and Alternate Fee (SEC) cracking down on different crypto corporations (together with Paxos, issuer of runner-up stablecoins BUSD), the agency is raring for lawmakers to determine a authorized framework that gives it with a transparent pathway to compliance.
In his attraction to Congress, the Circle CEO argues that “digital currencies” is not going to solely make remittances quicker and cheaper, however permit the greenback to retain its “place of power” throughout the globe.
“Competitors for what cash will get used on the web is rising,” he mentioned. “The actual query is whether or not international commerce will occur in digital {dollars}, or digital euros or yuan.”
Allaire made an identical case earlier than congress in ready remarks final month, shortly after Republicans offered a third draft of their stablecoin laws. He warned of the aggressive risk offered China’s surveillance-embedded digital yuan, and the greenback’s falling share of world foreign money reserves ove the previous 8 years.
Earlier this month, Russian information outlet RT reported that BRICS nations are planning to launch a gold-backed foreign money to facilitate international commerce between them, fairly than {dollars}. Whereas the plan prompted curiosity from dozens of different nations to hitch BRICS, India’s exterior affairs minister mentioned the nation has not curiosity in such a mission.
Each Circle and Tether have cumulatively spent seven figures lobbying lawmakers on stablecoin laws.
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