By George Ward
According to Jeremy Allaire, chief executive officer of USDC stablecoin issuer Circle, the United States Securities and Exchange Commission is not a suitable regulator to oversee stablecoins.
Banking Regulators Are More Appropriate To Handle Stablecoin Payments – Allaire
Allaire faulted the SEC’s regulatory focus on stablecoins, stating that stablecoins pegged to the United States dollar should be subject to the supervision of a banking authority rather than the securities and exchange commission.
The Circle boss believes the prominent US financial regulator is not the appropriate stablecoin regulator. He went on to say that there is a reason why governments worldwide are emphasizing that the regulation of stablecoin payments should be by the banking regulator and no other regulatory authority.
When the financial watchdog delivered a Wells notice to Binance USD issuer Paxos, Circle asserted that the SEC had not pursued similar legal action against them. But, from a policy standpoint, the view that is constant throughout the world, this action is the domain of banking regulators and payment systems, not securities regulators.
On the other hand, the Circle chief, on the other hand, said he was in favor of the SEC’s plan on the custody of cryptocurrencies. The plan in question would make it much harder for crypto exchangers to become custodians without having the requirements.
The chief executive pointed out that having skilled custodians that can give adequate control structures and bankruptcy safeguards, among other things, is an instrumental component of the market structure and a very significant one.
Circle-issued USD Coin is the second-leading stablecoin in use around the world. Its current supply is worth $42.2 billion, which gives it a 31 percent market share. With a total supply of $70.6 billion and a market share of 52 percent, Tether is still the leading stablecoin globally.
Allaire Shares Similar Sentiments With SEC Commissioner
Earlier, Allaire expressed his agreement with the Securities and Exchange Commission commissioner, Hester Peirce. Peirce stated that the agency would need to consult with Congress regarding the enforcement of crypto regulations.
However, some industry players argue that because there is no law in this area. Hence, the Commission is doing as it pleases regarding the enforcement of crypto rules. Allaire, however, agrees with Peirce’s opinion and adds that this view is similar to what he previously said regarding stablecoin regulation by the SEC.