Jeremy Allaire, CEO of USDC issuer Circle, argued that stablecoins are not securities and therefore should be overseen by a banking regulator rather than the US Securities and Exchange Commission (SEC).
In an interview with Bloomberg on Feb. 23, Allaire said that stablecoins around the world means of payment pointed out that there is a reason why it was defined as Stating that stablecoins are a means of payment and that payment instruments cannot be securities, the CEO said, securities controlled by the regulator illogical arguing that a banking regulator He said it should be under his control.
CEO in interview with SEC on regulation of stablecoins to opposing ideas although the regulator has recently recommended qualified custodian expressed support for the legislation.
Another stablecoin issuer of the SEC in the recent past to Paxos One Wells statement SEC jurisdiction over cryptocurrencies questioned again. First SEC Chairman Gary Gensler Almost all of the SEC-wide cryptocurrencies, including securities While CEO Allaire and other crypto industry actors claim that stablecoins are a part of a payment instrument, not an investment noted that.
SEC Is Not The Right Regulator
CEO says SEC is the right regulator for stablecoins not that stablecoins, which are defined as a means of payment while thinking, by the securities regulator inefficient And illogical argued that. Every stablecoin it’s not the same However, when viewed from a policy perspective, Allaire ultimately saw them all as a means of payment. that you are accepted suggested.
Qualified Custodian Legislation is Important and Necessary for the Market
On the other hand, the CEO said it was highly recommended by the SEC that exchanges should serve as crypto custodians. will make it difficult proposed legislation that you support stated. Proper control structure and bankruptcy protection able to meet requirements such as qualified asset custodians for the market structure necessary and valuable The CEO said that random exchanges hide customer assets. to scenarios about to be removed A lot lesson underlined that.