Circle CEO Calls for U.S. Registration of Dollar-Backed Stablecoins

Circle CEO Jeremy Allaire has called for dollar-backed stablecoins to be registered in the U.S., arguing that companies issuing these digital tokens should not be able to ignore U.S. laws. Allaire, the co-founder and CEO of stablecoin issuer Circle, made these remarks in an interview with Bloomberg. Circle's USDC is the second-largest dollar-backed stablecoin by market cap, trailing only Tether's USDT.

Allaire's comments come amidst a growing focus on cryptocurrencies during President Donald Trump's presidency. In January, Trump issued an executive order outlining specific actions, including the development of a more crypto-friendly regulatory framework. In February, Tennessee Senator Bill Hagerty introduced a stablecoin oversight bill that would establish a regulatory regime for U.S. dollar-backed coins.

Allaire emphasized that companies issuing dollar stablecoins, regardless of their location, should be required to register in the U.S. "Whether you’re an offshore company or based in Hong Kong, if you want to offer your dollar stablecoin in the U.S., you should need to register in the U.S. just like we have to go register everywhere else," Allaire said.

These sentiments were echoed by Dante Disparte, Circle's Chief Strategy Officer & Head of Global Policy and Operations. Disparte stated, "All companies that issue dollar stablecoins - whether they’re startups or based outside the U.S. - should have the opportunity to register in the United States and compete on a level playing field – no company that issues dollar stablecoins should get a free pass from safety and soundness rules and appropriate prudential supervision."

The stablecoin sector has a total market cap of $232 billion and plays a crucial role in cryptocurrency trading and international money transfers. Companies like PayPal are expanding their stablecoin businesses. Michelle Gill, the general manager of PayPal’s small business and financial services group, told Bloomberg that the company plans to integrate its PYUSD stablecoin, ranked 10th largest by market cap, into more of its products in the coming months.