"Allaire Calls for Mandatory US Stablecoin Registration Amid Tether Scrutiny"

Circle CEO Jeremy Allaire has called for mandatory US registration of stablecoin issuers, emphasizing the need for enhanced consumer protection and financial integrity. This advocacy comes amidst increasing scrutiny on Tether's business model and growing bipartisan support for a structured stablecoin framework in the US.

Allaire's statement was made during the Circle Stablecoin Day event in New York City, which featured business and product leaders from various financial institutions. He highlighted the importance of mandatory registration for stablecoin issuers, regardless of their offshore status or location, to ensure compliance with US laws and regulations.

The conversation around stablecoin regulation has intensified, with legislative efforts gaining traction. Senator Bill Hagerty recently introduced a bill to establish a regulatory framework for stablecoins, which is expected to be among the first crypto-related policies considered under the Trump administration. Allaire emphasized that stablecoin issuers should not be granted a "free pass" to ignore US laws and regulations.

Tether, the largest stablecoin issuer, has faced criticism for its lack of transparency and regulatory oversight. Tether CEO Paolo Ardoino addressed speculation that some major crypto firms are attempting to influence US stablecoin regulations, stating that their real intent is to "Kill Tether." The connection between Tether's reserves, partially managed by Cantor Fitzgerald, and the US Secretary of Commerce has also fueled speculation about the potential influence of regulatory decisions on the stablecoin market.

Regulatory momentum for stablecoins is building across multiple US agencies. The Federal Reserve has weighed in on the potential impact of stablecoins on the global financial system, with Federal Reserve Governor Christopher Waller suggesting that stablecoins could extend the US dollar's global dominance by making it more accessible in digital markets. Fed Chair Jerome Powell has also advocated for stablecoin regulation, stressing the need for a clear and structured oversight framework. Democrat Representative Maxine Waters proposed bipartisan legislation to regulate stablecoins, demonstrating that the issue has bipartisan support.

The Commodity Futures Trading Commission (CFTC) is set to discuss a pilot program for stablecoin regulation, which could provide further clarity on how these digital assets will be governed. One of the most significant potential impacts of US stablecoin regulations is on Tether's business model, as new rules could force Tether to liquidate some of its Bitcoin holdings to comply with US regulations.

The debate over regulatory oversight will continue as US policymakers move toward establishing a