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<p class="is-style-lead">USDC issuer Circle <a href="https://www.forbes.com/sites/ninabambysheva/2023/06/07/circle-begs-congress-please-regulate-us/?sh=6e0c21484e27&amp;utm_source=TWITTER&amp;utm_medium=social&amp;utm_content=10266057756&amp;utm_campaign=sprinklrForbesCrypto" target="_blank" rel="noopener">remains bullish</a> about its future prospects despite recent liquidity challenges triggered by the collapse of Silicon Valley Bank.&nbsp;</p>



<p>Despite facing significant redemptions amidst the US regional banking crisis in March 2023, driven by fear and uncertainty surrounding Circle&#8217;s reserves held at Silicon Valley Bank, the company <a href="https://crypto.news/circle-bny-mellon-custodian-usdc/">swiftly transferred</a> its SVB funds to Bank of New York Mellon, mitigating potential risks.</p>



<p>Jeremy Allaire, CEO of Circle, is confident the company will gain a competitive edge once a clear regulatory framework is established in the US.</p>



<p>The current landscape is marked by US lawmakers striving to categorize cryptocurrencies as securities or commodities through a draft proposal. The absence of comprehensive regulations has created an unfavorable environment for the crypto market ecosystem.</p>



<p>Recent<a href="https://crypto.news/sec-sues-coinbase-just-hours-after-binance/"> legal actions</a> against major players like Binance and Coinbase have raised concerns about potential bias exhibited by US regulators, particularly the Securities and Exchange Commission (SEC), against non-US crypto businesses.</p>



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<p>Consequently, speculation has been rife that USDC, as a stablecoin, may receive preferential treatment from the US government compared to its primary counterpart, Tether (USDT).</p>



<p>Allaire emphasizes that Circle&#8217;s unwavering compliance with financial regulations will ultimately give USDC a competitive advantage.</p>



<p>Discussing a recently proposed stablecoin bill in the US House of Representatives, the Circle CEO stated,</p>



<blockquote class="wp-block-quote">
<p>&#8220;With a bill like this, we&#8217;ll end up doing more business with banks than we currently do.&#8221;</p>
<cite>Jeremy Allaire, CEO of Circle</cite></blockquote>



<p>Allaire believes that as banks may not be licensed to operate in the digital assets industry, USDC could be a direct competitor to traditional US banks.</p>



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<iframe title="Stablecoins: Redefining Trust and Stability in a Post-Banking Crisis" width="1020" height="574" src="https://www.youtube.com/embed/kQrK_hzcQW0?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
</div></figure>



<h2 class="wp-block-heading" id="strong-circle-8217-s-regulatory-journey-in-other-jurisdictions-strong"><strong>Circle&#8217;s regulatory journey in other jurisdictions</strong></h2>



<p>Circle&#8217;s commitment to regulatory compliance has been evident since its establishment in 2013. The company has obtained in-principle approval as a major payment institution license holder in Singapore and is regulated as a licensed money transmitter in 48 jurisdictions across the US.</p>



<p>As reported by crypto.news on June 7, the Monetary Authority of Singapore (MAS) <a href="https://crypto.news/circle-receives-digital-token-license-in-singapore/">granted</a> Circle&#8217;s Singapore division a Major Payment Institution (MPI) license, further solidifying its regulatory standing.</p>



<p>Furthermore, pending approval, Circle has recently applied for a French license, aiming to be recognized as an electronic money institution and a digital asset service provider.</p>



<p>Circle&#8217;s strategic maneuvers amidst the ongoing banking crisis exemplify its proactive approach to safeguarding its position in the market. By positioning USDC as a stablecoin that adheres to financial regulations, Circle aims to carve out a significant market share.&nbsp;</p>



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Circle confident in USDC’s future amid US banking crisis

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