Stablecoin

Patrick

Future

Gary

<p><strong>Circle has also become a target in the witch hunt led by SEC leader Gary Gensler lately against the entire crypto industry.</strong></p>
<h2 style="text-align: center;" id="dire-need-for-regulation">Dire Need for Regulation</h2>
<p>Circle, a company that follows the rules, is facing challenges in a new industry where existing regulations don&#8217;t fit. This puts them at a disadvantage compared to Tether Ltd., a secretive company based in the British Virgin Islands. Circle <a href="https://www.forbes.com/sites/ninabambysheva/2023/06/07/circle-begs-congress-please-regulate-us/?sh=74380e354e27" target="_blank" rel="noopener">wants clear rules</a> for stablecoins and is asking for U.S. legislation.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">An expansive look at our CEO &amp; Co-Founder Jeremy Allaire and the state of stablecoin and crypto regulation: <a href="https://t.co/Xgh5Selyko">https://t.co/Xgh5Selyko</a> <a href="https://twitter.com/Forbes?ref_src=twsrc%5Etfw">@Forbes</a></p>
<p>“I’ve never been out there all about trading bitcoin or replacing the world’s currencies. I’ve been all about how to fuse the existing…</p>
<p>— Circle (@circle) <a href="https://twitter.com/circle/status/1666469587884359680?ref_src=twsrc%5Etfw">June 7, 2023</a></p></blockquote>
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<h2 style="text-align: center;" id="potential-competition">Potential Competition</h2>
<p>It is clear that regulations would not necessarily make life easier for the crypto industry. If stablecoins become regulated and secure, big banks with resources and blockchain investments could enter the stablecoin business and become powerful competitors. This could disrupt existing remittance, payment, and peer-to-peer transfer systems.</p>
<h2 style="text-align: center;" id="optimism">Optimism</h2>
<p>Allaire believes that new U.S. legislation will enable widespread use of USDC in the financial system. He thinks banks will become customers rather than competitors. However, some congresspeople believe that Circle underestimates the threat from big banks, such as JPMorgan.</p>
<p>Still, Circle&#8217;s CEO, Jeremy Allaire, is not worried and believes that the new bill will actually increase bank adoption of their stablecoin, USDC. He continues to voice his concerns and to ask regulators to finally create the much-needed legal framework for the industry.</p>
<h2 style="text-align: center;" id="seeking-regulation-like-a-bank">Seeking Regulation Like a Bank</h2>
<p>Allaire wants Circle to be regulated like a bank so that they don&#8217;t have to rely on traditional banks. He has support from Congressman Ritchie Torres, who believes stablecoin issuers should have their own regulatory framework.</p>
<h2 style="text-align: center;" id="importance-of-stablecoin-regulation">Importance of Stablecoin Regulation</h2>
<p>Recent lawsuits against Binance and Coinbase by the SEC could be a blessing for Circle, as it creates a favorable environment for regulation. The latest bill in Congress would set rules for stablecoins, including requirements for collateral and auditing. Other countries, like the European Parliament, have already passed legislation for stablecoin issuance.</p>
<h2 style="text-align: center;" id="circle-8217-s-expansion-and-focus">Circle&#8217;s Expansion and Focus</h2>
<p>While waiting for U.S. regulators to take action, Circle is expanding <a href="https://walletinvestor.com/magazinadmin/circle-singapore-obtains-major-payment-institution-license/" target="_blank" rel="noopener">overseas</a>. It has licenses in multiple countries and is working closely with regulators. Allaire emphasizes that Circle&#8217;s focus is on combining the existing financial system with the possibilities of blockchain, rather than trading bitcoin or replacing currencies.</p>
<h2 style="text-align: center;" id="blockchain-leaders-8217-testimony">Blockchain Leaders&#8217; Testimony</h2>
<p>In the meantime, other leading figures of the crypto world are also campaigning for a clear regulatory framework for digital currencies. Blockchain industry executives are addressing the U.S. House Energy and Commerce Committee, highlighting the positive aspects of the industry. They argue that the sector should be allowed to thrive with better regulations. Blockchain is seen as beneficial for America, and consumer protection laws need to adapt to this technological innovation.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">Today, I had the privilege of testifying at the Innovation, Data &amp; Commerce subcommittee at a Congressional hearing focused on educating lawmakers on why this tech is important to all of us, and how it changes the value paradigm of the Internet.</p>
<p>We are in this together. <a href="https://t.co/l8OcDM12hB">pic.twitter.com/l8OcDM12hB</a></p>
<p>— Ryan Wyatt (@Fwiz) <a href="https://twitter.com/Fwiz/status/1666506738080653312?ref_src=twsrc%5Etfw">June 7, 2023</a></p></blockquote>
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<h2 style="text-align: center;" id="transparency-and-privacy">Transparency and Privacy</h2>
<p>Blockchain technology enables transparency and can be used in legal proceedings where proof of custody is crucial. However, it has also improved privacy through advancements in cryptography. To protect Americans, Congress is urged to pass comprehensive privacy legislation and provide adequate funding for the FTC to investigate and prosecute blockchain-related harms.</p>
<h2 style="text-align: center;" id="supporters">Supporters</h2>
<p>It seems that at least some regulators have heard the cries of the industry and are ready to fill in the regulatory void cryptocurrencies must exist in today. The Chairman of the House Financial Services Committee, Patrick McHenry, announced a hearing for the crypto industry’s representatives. The hearing titled The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem will be held on June 13, 2023. McHenry stated that:</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">This discussion draft is a critical first step toward much-needed clarity for the digital asset ecosystem.</p>
<p>I encourage the public to provide constructive feedback to help us get this right.</p>
<p>Thanks to <a href="https://twitter.com/CongressmanGT?ref_src=twsrc%5Etfw">@CongressmanGT</a>, <a href="https://twitter.com/RepFrenchHill?ref_src=twsrc%5Etfw">@RepFrenchHill</a>, and <a href="https://twitter.com/RepDustyJohnson?ref_src=twsrc%5Etfw">@RepDustyJohnson</a> for your partnership. <a href="https://t.co/aPKXAMwluJ">https://t.co/aPKXAMwluJ</a></p>
<p>— Patrick McHenry (@PatrickMcHenry) <a href="https://twitter.com/PatrickMcHenry/status/1664722251780898820?ref_src=twsrc%5Etfw">June 2, 2023</a></p></blockquote>
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<h2 style="text-align: center;" id="conclusion">Conclusion</h2>
<p>Circle and the blockchain industry are united in their plea for clear regulations in the stablecoin sector. Circle seeks to level the playing field and ensure compliance by advocating for U.S. legislation. While potential competition from big banks looms, Circle remains optimistic that regulation will actually increase bank adoption of their stablecoin. The recent lawsuits against major players in the industry have created an environment favorable to stablecoin regulation. Other countries have already taken steps in this direction. As the industry expands globally, blockchain leaders emphasize the need for comprehensive regulations that support growth and protect consumers. The call for privacy legislation highlights the importance of balancing transparency with individual privacy rights. With regulators showing signs of progress, there is hope for filling the regulatory void in the cryptocurrency industry. Ultimately, the plea for regulation underscores the necessity of clear rules and guidelines to foster the growth and safety of digital assets.</p>

Circle’s Plea for Regulation

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