Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The discussion surrounding stablecoin regulation in the United States is gaining momentum, with Circle CEO Jeremy Allaire advocating for the essential registration of all dollar-backed stablecoin issuers operating within the country.
In a recent interview with Bloomberg, Allaire contended that non-U.S. stablecoin providers should not be permitted to bypass American regulations while still catering to U.S. customers.
His remarks come in the context of increasing legislative initiatives, including Senator Bill Hagerty’s proposal for a stablecoin framework and President Donald Trump’s efforts to position the U.S. as a global leader in cryptocurrency.
Allaire’s position differentiates Circle from Tether, the largest stablecoin issuer. Tether’s CEO, Paolo Ardoino, has accused competitors of attempting to weaken USDT through regulatory strategies.
Tether CEO @paoloardoino asserts that competitors are employing regulatory tactics to undermine USDT.#Tether #Stablecoinshttps://t.co/osDdQ6T9Kj
— Cryptonews.com (@cryptonews) February 25, 2025
Circle CEO Jeremy Allaire Advocates for U.S. Registration of Stablecoin Issuers
Circle CEO Jeremy Allaire appears to support a controlled approach to stablecoin regulation, asserting that issuers of dollar-pegged tokens should be required to register in the U.S.
During the interview, Allaire expressed concerns regarding stablecoin issuers outside the U.S., stating there “shouldn’t be a free pass.”
“It shouldn’t be a free pass, right? Where you can simply disregard U.S. law and do whatever you want elsewhere while selling into the U.S.”
Allaire’s comments arise as Senator Bill Hagerty recently introduced a framework for stablecoin issuers, while President Donald Trump has pledged to establish the U.S. as a cryptocurrency hub.
Circle’s initiatives could potentially impact its main competitor and the largest stablecoin issuer by market cap, Tether, which has recently relocated its headquarters to Bitcoin-friendly El Salvador.
“This is about consumer protection and financial integrity. Whether you’re an offshore entity or based in Hong Kong, if you wish to offer your dollar stablecoin in the U.S., you should be required to register in the U.S. just as we have to register everywhere else.”
Importantly, USDC from Circle has recently become the only legal stablecoins recognized by the Dubai Financial Services Authority (DIFC).
Related Posts
USDC and EURC have just become the only legal stablecoins acknowledged by the Dubai Financial Services Authority, joining the EU, Canada, and soon other major jurisdictions worldwide. Financial institutions in Dubai can now transact in markets with USDC and EURC. https://t.co/fg8Vfmb8nS
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) February 24, 2025
Tether CEO Paolo Ardoino Addresses U.S. Stablecoin Regulation
Tether CEO Paolo Ardoino has firmly opposed what he characterizes as competitors’ attempts to utilize regulatory strategies to weaken USDT, the largest stablecoin globally.
In a post on X, Ardoino emphasized Tether’s widespread acceptance in emerging markets and accused rival stablecoin issuers of engaging in “lawfare” by using legal and regulatory frameworks to suppress competition.
USDt is the most effective tool for U.S. Dollar dominance and distribution across emerging markets.
Tether has built, over the last decade, the most extensive physical and digital distribution network, ranging from thousands of kiosks in Africa and South America to digital remittances… https://t.co/KD2oUzemT8— Paolo Ardoino
(@paoloardoino) February 25, 2025
(@paoloardoino) February 25, 2025Ardoino’s comments were made alongside a post by Vance Spencer, co-founder of Framework Ventures, who cautioned that forthcoming U.S. stablecoin regulations might restrict foreign stablecoin issuers from accessing the U.S. Treasury market.
Spencer argued that such limitations would adversely affect international stablecoin issuers like Tether and undermine the global supremacy of the U.S. dollar.
Ardoino highlighted Tether’s vast distribution network, which encompasses digital remittance platforms, institutional payment infrastructures, thousands of physical kiosks, and underserved populations in Africa and South America.
According to Ardoino, Tether’s strategic holdings of over $115 billion in U.S. Treasuries position it as the 18th largest holder of these assets. The stablecoin serves over 400 million individuals globally.
However, he expressed concern that instead of promoting competition through innovation, rival stablecoin issuers are attempting to hinder Tether through regulatory means.
He accused competitors of leveraging political influence to advocate for regulations that impede USDT’s growth, warning that such tactics could ultimately harm communities that rely on stablecoins for financial stability.
Currently, this appears to be a struggle between competitors seeking maximum scrutiny of stablecoin issuers and those advocating for more balanced regulations to encourage innovation and growth.
While the government has yet to reach a definitive conclusion, the future of U.S. recognition in the stablecoin landscape depends on the decisions made by regulators, as stablecoins increasingly play a vital role in global transactions and U.S. economic strategy.
The post Circle CEO Jeremy Allaire Advocates for Mandatory U.S. Registration of Stablecoin Issuers appeared first on Cryptonews.
