"Circle CEO Urges Mandatory US Registration for Stablecoin Issuers"

Circle CEO Jeremy Allaire Pushes for Mandatory US Registration of Stablecoin Issuers

Circle CEO Jeremy Allaire has called for all issuers of US dollar-based stablecoins to be registered within the US. This push for mandatory registration comes as regulatory scrutiny around stablecoins intensifies, highlighting their critical role in digital asset markets as a bridge between crypto and traditional finance (TradFi).

Allaire's remarks were made during the Circle Stablecoin Day event in New York City, where business and product leaders from various financial institutions gathered. According to Allaire, mandatory registration would enhance consumer protection and foster financial integrity. He emphasized that whether an issuer is based offshore or in Hong Kong, if they want to offer their US dollar stablecoin in the US, they should need to register in the US just like Circle has to register everywhere else.

The conversation around stablecoin regulation has gained momentum, 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 able to ignore US law and sell their products into the US without proper registration and oversight.

Tether, the largest stablecoin issuer, has faced criticism for its lack of transparency and regulatory oversight. Tether recently moved its headquarters to El Salvador, further raising concerns about its commitment to US regulations. While Tether has denied any wrongdoing, some have speculated that major crypto firms may be attempting to influence US stablecoin regulations. Tether's reserves are partially managed by Cantor Fitzgerald, whose former CEO, Howard Lutnick, was recently confirmed as the US Secretary of Commerce. This connection has fueled speculation about how regulatory decisions may influence the stablecoin market.

Government leaders and regulatory agencies are pushing for stablecoin regulation. 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 (CF