According to Circle creator and CEO Jeremy Allaire, the United States Securities and Exchange Commission (SEC) is not the proper body to oversee stablecoins.
The Circle CEO discussed the SEC’s recent actions to crack down on the cryptocurrency industry, particularly stablecoin issuer Paxos, in an interview with Bloomberg on February 24.
Allaire appears to have objected to the SEC’s emphasis on stablecoins, contending that dollar-pegged “payment stablecoins” ought to be regulated by a banking agency rather than the SEC.
There is a reason why the government is explicitly stating that payment stablecoins are a payment system and banking regulator activity everywhere in the world, including the U.S., said Allaire. “I don’t think the SEC is the regulator for stablecoins,” he continued.
After the delivery of a Wells notice to Paxos, the issuer of Binance USD, Circle last week affirmed that it had not been singled out by the SEC.
As we like to say, not all stablecoins are made equally, according to Allaire. Yet, from the standpoint of global policy, everyone agrees that this is a payment system and prudential regulator space.
Nonetheless, the CEO of Circle declared that he generally supported a recent SEC proposal on cryptocurrency custody that would make it much more difficult for exchanges to become custodians.
We believe it is highly vital and valuable to have qualified custodians who can offer the proper control structures, bankruptcy safeguards, and other things.
Circle is the creator of Dollar Coin, the second-largest stablecoin in the world.
It has a market share of 31% and a $42.2 billion circulating supply. With a market share of 52% and a supply of $70.6 billion, Tether continues to be the most popular stablecoin.
Allaire concurred with SEC Commissioner Hester Peirce’s position that the organization ought to refer to Congress on February 23. Some people think the SEC has been enforcing crypto regulations and laws on its own because there is no legislation.
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