JEREMY Allaire, the co-founder of stablecoin issuer Circle Internet Financial, is making the case that the issuers of the US dollar-based cryptocurrencies that underpin much of the trading in digital assets markets should be registered in the United States.
Stablecoins have leapt to the forefront of the crypto market’s attention as of late with legislation governing the use of tokens among the first measures expected to be considered during the second Trump administration. Senator Bill Hagerty, a Republican from Tennessee, introduced legislation earlier this month to create a framework for stablecoins. President Donald Trump has vowed to make the US the crypto capital of the world.
“It should not be a free pass, right?” Allaire said. “Where you can just ignore the US law and go do whatever the hell you want wherever and sell into the United States.”
New York-based Circle is the issuer of USDC, the second-largest stablecoin after Tether Holdings’s USDT token. Tether recently moved its headquarters to El Salvador. Stablecoins often serve as a bridge between crypto and the traditional financial system, in addition to being used to facilitate trades and serving as a haven from the price volatility of most other cryptocurrencies.
“This is about consumer protection and financial integrity,” Allaire said. “Whether you are an offshore company or based in Hong Kong, if you want to offer your US dollar stablecoin in the US, you should need to register in the US just like we have to go register everywhere else.”
A Tether spokesperson did not immediately respond to a request for comment. Earlier on Tuesday, Tether chief executive officer Paolo Ardoino commented about speculation on X that some of the largest crypto companies are seeking to influence the US legislation in their favour.
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“While our competitors business model should be to build a better product and even bigger distribution network, their real intent is ‘Kill Tether’,” Ardoino said.
Tether’s reserves are partially managed by Cantor Fitzgerald, whose former chief executive, Howard Lutnick was recently confirmed by the Senate to be secretary of the US Department of Commerce.
In January, Trump firmly aligned the US government’s interests with those of stablecoin issuers such as Circle and Tether by signing an executive order to protect the US dollar “including through actions to promote the development and growth of lawful and legitimate US dollar-backed stablecoins worldwide”.
“The stablecoin bill is the first priority of the administration,” Allaire said. BLOOMBERG
