Circle CEO Jeremy Allaire is set to testify before the US House Financial Services Committee today, urging lawmakers to prioritize the primacy of the US dollar and pass essential stablecoin legislation.
In a June 12 blog post, Allaire unveiled his prepared remarks that he plans to present to Congress concerning the regulation of stablecoins.
The CEO emphasized the importance of enacting comprehensive legislation to establish a regulatory framework conducive to a vibrant and secure digital assets market.
Circle CEO backs bipartisan stablecoin bill
Allaire’s statements revolve around a bipartisan draft discussion bill titled “a bill to provide for the regulation of payment stablecoins, and other purposes.” He expressed support for the proposed legislation. He mentioned that if it became law, it would enable access to the US dollar while prioritizing safety and fostering healthy competition.
While endorsing the draft bill, Allaire highlighted the need for specific improvements. He urged federal enforcement of standards, and advocated for easier access to Federal Reserve account services for stablecoin issuers. He suggested that stablecoin intermediaries should be required to hold stablecoins with chartered qualified custodians.
Additionally, Allaire recommended the inclusion of criminal penalties, rather than civil penalties, for entities involved in issuing counterfeit stablecoins and digital dollars.
Allaire urges action to counter digital yuan’s rise
Allaire underscored the importance of taking action to preserve the dominance of the US dollar, noting its declining position in global foreign reserves. He pointed out the rise of alternative digital payment technologies like China’s digital yuan and urged US lawmakers to proactively lead stablecoin regulation instead of leaving it to foreign jurisdictions.
Allaire’s testimony, along with the presence of other prominent figures in the cryptocurrency industry, such as Emin Gün Sirer, founder and CEO of Ava Labs, and Aaron Kaplan, founder and Co-CEO of Prometheum, will be presented before Congress on June 13.
As the cryptocurrency landscape evolves, stakeholders await Congress’s response to the growing need for regulatory clarity and guidance in the stablecoin market.
The outcome of this congressional hearing may shape the future of stablecoin regulation in the US and influence global approaches to digital currency oversight.