The CEO of Circle said that ‘aggressive regulatory moves’ against crypto prompted ‘deep market worry

Jeremy Allaire asked authorities to establish a “clear, consistent, and pragmatic policy” to assist the United States in maintaining its leadership position.

Circle’s chief executive officer, Jeremy Allaire, has issued a warning about the dangers posed to the cryptocurrency market by exposure to the U.S. dollar and regulatory risk in the U.S. banking system.

Allaire said in a March 23 Twitter thread that there “appears to be a large-scale aversion to risk from USD exposure to US banks and US regulatory risk.”

The CEO added that market fear is widespread due to the massive collapse of the US banking sector and the strong regulatory efforts against cryptocurrencies.

He remarked on the irony of enterprises with the greatest degree of compliance with U.S. standards and the highest level of integration with the financial system experiencing problems. This group is now regarded as dangerous owing to worries regarding stranded assets.

Allaire noted that a macro risk was also pushing rotation from USD into Bitcoin and Ethereum, the two most prominent digital assets.

The CEO of Circle advised U.S. lawmakers to proceed with caution. He remarked that their activities have begun driving market players out of the United States and towards nations with inadequate regulation, greater risks, and looser controls.

Therefore, according to Allaire, the present scenario requires a “clear, coherent, and pragmatic policy” if the United States does not want to lose its leadership position in the blockchain technology area.

Allaire said that Circle will continue to operate within the regulatory framework and respect to the greatest principles of openness and transparency.

He added: “USDC has never missed a beat; we have never been unable to mint or redeem USDC for $1, including during the stress test of the past week.” In the last year, as of last week, we have redeemed $192,4 billion USDC at $1 and issued $176,9 billion USDC at $1.

Additionally, the CEO added that Circle is adding additional transportation and settlement banking partners so that it can conduct the issue and redemption of digital currencies 24/7 and 365 days a year.

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