[ad_1]
Gold-plated souvenir cryptocurrency Tether, Bitcoin and Ethereum coins are shown next to a screen displaying a trading chart on May 8, 2022 in a photo taken in London.
Justin Tallis | AFP | getty images
The CEO of Circle, the maker of the popular stablecoin USD coin, sees a strong possibility that legislation for stablecoin issuers like his will come in 2024.
Stablecoins, which allow traders to move in and out of crypto, are a $135.3 billion market — but they’re unregulated for the most part. The US has not yet passed federal crypto regulation, even though jurisdictions around the world are approving new crypto-focused laws.
But Circle boss and co-founder Jeremy Allaire is hopeful things will change this year, saying there’s a “very good chance” that US lawmakers will approve a stablecoin bill.
Speaking with CNBC at the World Economic Forum in Davos, Switzerland, Allaire said regulatory developments around the crypto industry are increasing around the world, and the US is more likely to approve laws for stablecoins than before. .
“I think what you’re seeing is the administration’s willingness, the Treasury’s willingness [Federal Reserve]By both houses of Congress, and certainly on a bipartisan basis,” Allaire told CNBC on Monday.
“Digital dollars are happening around the world, other governments are regulating dollar-denominated digital currencies before the United States. And so I think it’s very important for American leadership to take action and emphasize that and include the right consumer protections.” There is a strong desire,” Allaire said.
Allaire was asked about the Payments Clarity Stablecoins Act, which seeks to bring stablecoins within the same regulatory framework that governs traditional financial services companies.
The Act was passed by the House Financial Services Committee in 2023, taking it to the floor of the House of Representatives for consideration. It is yet to get the approval of the MPs in the House.
Circle recently filed its confidential S-1 registration with the U.S. Securities and Exchange Commission, signaling the company’s intention to go publicly listed. The company did not provide any details about the timing of its IPO, which came the same week that the SEC approved the first U.S. spot bitcoin ETF.
When Allaire was asked whether the timing of Circle’s listing was in response to the SEC’s ETF approval, he said he could not comment on the development due to regulatory restrictions.
2023 was an encouraging year for crypto, with markets seeing a major recovery, and industry insiders are expecting an even more fortunate 2024 for the industry.
“Stablecoins continue to be the killer app for blockchain technology in particular,” Allaire told CNBC. “We’re starting to see an increase in its use around the world.”
“It’s been a really powerful time for that and we think 2024, with things like spot ETFs and world regulatory clarity, is going to open it up even more widely.”
Dante Dispart, Circle’s chief strategy officer and global head of public policy, echoed Allaire’s view that 2024 will be the year the US will see regulations for stablecoins.
“I’m optimistic that a payments stablecoin policy is a possibility early in the new year. And it’s rapidly becoming a bipartisan reality, in no small measure,” Despert told CNBC’s McKenzie Siglos on the sidelines of Davos.
Desparte suggested that concerns about the illicit use of some cryptocurrencies could push US lawmakers to introduce stablecoin legislation, as stablecoins have more legitimate uses for everyday shopping and trading than their more volatile neighbors in crypto. , which are heavily linked. With criminal activity.
“You have seen in the conflict in the Middle East, for example, the use of certain digital assets in space as a vehicle for financing terrorism,” Dysparte said.
“Domestically in the United States, you may see some assets in the region being used as a vehicle to finance fentanyl trafficking, and worse, all kinds of illegal actions that are bad for the U.S. dollar, Bad for the US economy, bad for the sector, bad for banking and payments, and bad for people,” Despert said.
“Unless this is addressed, it will be against the interest of the country.” [and] economy. So I am optimistic that this will be a year where policymakers will get a chance to actually do something positive on stablecoins instead of enforcement,” said Circle’s policy head.
—CNBC’s Mackenzie Siglos contributed to this article.
