The main operator of stablecoin USDC, the American company Circle, has supported the intention of the administration of President Joe Biden to regulate issuers of stablecoins as banking institutions. It is reported by Yahoo Finance…
“We support this initiative. We believe it represents a significant progress in the development of the sector. There is real recognition that as payment stablecoins grow, they scale relatively quickly on the Internet, ”said Jeremy Allair, CEO of Circle.
In early November, the US President’s Financial Markets Working Group (PWG) released a report listing the risks associated with stablecoins and recommending equating asset issuers to banks.
Circle previously announced a restructuring into a “full reserve commercial cryptocurrency bank.” According to Allair, the firm is already in talks with regulators, but has not submitted an official application.
He noted that the details of the bank’s charter will have to be worked out with all departments controlling the banking sector and brought in line with federal legislation.
“We expect this to be a collaborative process with regulators,” Allair said.
In his opinion, large banks have no advantages as potential issuers of stablecoins. They do not have the necessary infrastructure and understanding of the asset to operate as Circle, the head of the firm emphasized.
“Banks, frankly, are struggling to figure this out. I think they will wait a lot to watch the approach to stablecoins. In the absence of specific rules, they are likely to avoid trying to issue the asset directly, ”says Allair.
As a reminder, Finance Minister Janet Yellen announced the convening of the PWG to discuss the regulation of stablecoins in July.
At the same time, the Fed said at a meeting that the lack of transparency of “stable coins” could threaten financial stability.
In September, SEC chief Gary Gensler pointed to the risk of widespread use of stablecoins. He also called them “cryptocurrency casino poker chips.”
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The main operator of stablecoin USDC, the American company Circle, has supported the intention of the administration of President Joe Biden to regulate issuers of stablecoins as banking institutions. It is reported by Yahoo Finance…
“We support this initiative. We believe it represents a significant progress in the development of the sector. There is real recognition that as payment stablecoins grow, they scale relatively quickly on the Internet, ”said Jeremy Allair, CEO of Circle.
In early November, the US President’s Financial Markets Working Group (PWG) released a report listing the risks associated with stablecoins and recommending equating asset issuers to banks.
Circle previously announced a restructuring into a “full reserve commercial cryptocurrency bank.” According to Allair, the firm is already in talks with regulators, but has not submitted an official application.
He noted that the details of the bank’s charter will have to be worked out with all departments controlling the banking sector and brought in line with federal legislation.
“We expect this to be a collaborative process with regulators,” Allair said.
In his opinion, large banks have no advantages as potential issuers of stablecoins. They do not have the necessary infrastructure and understanding of the asset to operate as Circle, the head of the firm emphasized.
“Banks, frankly, are struggling to figure this out. I think they will wait a lot to watch the approach to stablecoins. In the absence of specific rules, they are likely to avoid trying to issue the asset directly, ”says Allair.
As a reminder, Finance Minister Janet Yellen announced the convening of the PWG to discuss the regulation of stablecoins in July.
At the same time, the Fed said at a meeting that the lack of transparency of “stable coins” could threaten financial stability.
In September, SEC chief Gary Gensler pointed to the risk of widespread use of stablecoins. He also called them “cryptocurrency casino poker chips.”
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