Jeremy Allaire, CEO of Circle, which issues the stablecoin USD Coin (USDC) pegged to the value of the US dollar, argued that issuers of dollar-based cryptocurrencies should be located in the United States.
According to Bloomberg on the 25th (local time), CEO Allaire said, "To offer dollar-based stablecoins in the United States, you must be registered in the US," adding, "Similarly, if we operate in another country, we must register there."
Circle, headquartered in New York, issues USDC, the second-largest stablecoin after its competitor Tether. Recently, Tether announced plans to move its headquarters to El Salvador, raising suspicions that Tether is trying to evade US financial regulations.
CEO Allaire emphasized, "It should not be allowed to ignore US laws and operate freely anywhere while selling stablecoins to the US market," stressing that "this is a matter of consumer protection and financial trust."
In response to this criticism, Paolo Ardoino, CEO of Tether, rebutted via social media platform X (formerly Twitter), stating, "A competitor’s business model should be about building better products and a larger distribution network. However, their intention is to kill Tether."
As stablecoin transactions surge worldwide, the US government is accelerating discussions on related regulations. Earlier this month, Republican Senator Bill Hagerty introduced the "National Innovation and Establishment Act for US Stablecoins" to establish a clear regulatory framework for stablecoins.
Meanwhile, Bloomberg pointed out that part of Tether’s reserves is managed by investment firm Cantor Fitzgerald, whose former CEO is Howard Lutnick, the US Secretary of Commerce.
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