US Stablecoin Legislation Is ‘Low-Hanging Fruit,’ Says Circle’s CEO
Jeremy Allaire thinks that Congress will focus on stablecoin legislation because of its simplicity and substantial development potential.
For a simple reason, Jeremy Allaire, CEO of peer-to-peer payment platform Circle, expects the U.S. Congress will focus on stablecoin legislation this year.
Allaire told CoinDesk TV’s “First Mover” on Thursday from the World Economic Forum’s annual summit in Davos, Switzerland, that stablecoins are the lowest-hanging fruit. “It is the least complicated. This is a fundamental component.”
A circle is the issuer of the stablecoin USD coin (USDC), which is tied to the U.S. dollar. According to Crypto.com, there is approximately $43 billion worth of USDC tokens in circulation, and according to CoinMarketCap, it is the second-largest stablecoin by market capitalization.
Allaire said that USDC is a prime example of the expanding usage of stablecoins. Legislators in the United States and internationally are recognizing the “great size and business” that stablecoins may deliver. This year, he projected, stablecoin issuers would be “normalized in practically every significant market.”
Allaire said that “what’s occurring is that members of Congress are recognizing they need to get even more informed” on stablecoins.
Stablecoins are a sort of cryptocurrency whose price is stabilized by being tied to another asset class, such as a fiat currency or gold.
According to Allaire, The next step is for politicians in various parts of the globe to adopt a tougher stance on stablecoins, with the G-20 and the United States spearheading regulatory efforts.
He said that his firm has survived for a decade because it “walks through the front door with regulators” and strives to be truthful with them. Allaire said, “This culture of trust and openness plays itself out, and it pays benefits.”