Circle CEO praises US stablecoin bill in remarks prepared for House committee hearing
Circle CEO Jeremy Allaire published a June 12 blog post featuring testimony that he plans to present to Congress regarding draft stablecoin regulation.
Allaire urges for pro-U.S. stablecoin rules
Allaire said in his prepared remarks:
“The stablecoin bill is a crucial piece of legislation that should be the first step in creating a regulatory framework that builds the conditions for a vibrant and safe digital assets market.”
His comments relate to a bipartisan draft discussion bill titled “a bill to provide for the regulation of payment stablecoins, and for other purposes.”
Allaire said that the draft discussion bill, if it becomes legislation, would provide access to the U.S. dollar while ensuring safety and allowing for competition.
He said that the proposed legislation would provide strong regulation but suggested improvements. He urged for federal enforcement of standards, called for easier access to Federal Reserve account services for stablecoin issuers, and said that stablecoin intermediaries should be required to hold stablecoins with chartered qualified custodians.
Allaire also suggested that the bill should contain criminal — not civil — penalties for parties that issue counterfeit stablecoins and digital dollars.
CEO warns of U.S. losing dominance
Allaire said that the U.S. dollar is declining in dominance in global foreign reserves, while alternative digital payment technologies such as China’s digital yuan are on the rise. As such, Allaire said that the U.S. must act to keep the dollar competitive.
He added that other jurisdictions including the EU, Japan, and Hong Kong are creating laws for stablecoins issued in the U.S. He urged U.S. lawmakers to lead stablecoin regulation instead of allowing foreign countries to do so.
Allaire noted that his company, Circle, has obtained licenses and supervision in the U.S., Europe, and Asia for its own USDC stablecoin.
Allaire will present his remarks before Congress on June 13. Other notable crypto industry members including Emin Gün Sirer, founder and CEO of Ava Labs, and Aaron Kaplan, founder and Co-CEO of Prometheum will also attend.
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