- The company recalled that stablecoins are payment systems
- So, they should be controlled by banking regulators.
Circle CEO Jeremy Aller recalled that stablecoins are payment systems, not securities. This means that the SEC has no right to regulate them. The businessman shared these thoughts in an interview. Bloomberg.
The backdrop for such a conversation was the repression from the SEC and their plans to take full control of stablecoins. They recently banned Paxos from serving the BUSD coin.
“There is a reason why all over the world, including the United States, the government says directly that stablecoins are the activity of the payment system and banking regulators” Aller explains.
Circle is the issuer of the second largest stablecoin in the world, USDC. Therefore, the recent measures taken by the SEC in the crypto sector directly relate to this company. Moreover, it is registered in Boston and obeys local laws.
Despite the recent news, Circle has announced that it will increase its staff by 15-25%. They will also continue to work on the IPO. That is, they want to become a public company and enter the stock exchange.
“We plan to continue our path to an IPO and will take the necessary steps to achieve this as soon as possible” Circle CFO Jeremy Fox-Green said.
Yesterday we wrote that Paxos is in talks with the SEC regarding the BUSD stablecoin. They want to extend support for the coin until February next year.