Jeremy Allaire, CEO of Circle, expressed optimism about the United States enacting a long-awaited stablecoin law in 2023.
“There seems to be a strong push forward. I believe there’s a high likelihood of this becoming law within the year,” Allaire commented during a CNBC interview on January 15 at the World Economic Forum in Davos, Switzerland.
He noted, “Globally, digital dollar initiatives are advancing, with other nations regulating digital dollar currencies ahead of the U.S. Therefore, I sense a compelling need for action to maintain U.S. leadership and ensure appropriate consumer safeguards.”
Allaire, who leads the company responsible for the stablecoin USD Coin (USDC), observed recent positive movements among legislators, the judiciary, and regulatory bodies in the U.S.
Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Public Policy, also spoke to CNBC, saying, “I’m hopeful that we’ll see policies on payment stablecoins emerge early this year, reflecting a growing bipartisan consensus.”
The Clarity for Payment Stablecoins Act, proposed by U.S. Representative Patrick McHenry, stands out among the key stablecoin bills awaiting review in Congress. It seeks to establish a regulatory environment for stablecoin issuers akin to that for traditional financial entities.
Senator Bill Hagerty introduced the Stablecoin Transparency Act to Congress on March 31, 2022.
Circle has been actively advocating for stablecoin legislation, engaging the consulting firm Invariant for lobbying since late 2021 and reportedly spending around $760,000 on these efforts, as per ProPublica.
Following the launch and approval of Bitcoin (BTC) spot exchange-traded funds, Allaire anticipates further regulatory progress:
“This period has been significant, and we expect 2024, with developments like the spot ETF and global regulatory clarity, to broaden the scope even more.”
However, Disparte pointed out that concerns remain among lawmakers about the potential use of stablecoins in criminal activities.
“We’ve observed the use of certain digital assets for funding terrorism in Middle Eastern conflicts, and domestically in the U.S., for financing fentanyl trafficking,” he explained.
He stressed that addressing these issues is crucial for the country’s and economy’s interests.
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