USDC According to Jeremy Allaire, CEO and founder of distributor Circle, the US Securities and Exchange Commission (SEC) is not the right regulator for stablecoins.
The company is the issuer of USD Coin, the second largest stablecoin with circulation exceeding $42 billion.
USDC CEO Advocates for Cryptocurrencies to be Regulated by Bank Regulators
“I don’t think the SEC is a suitable regulator for stablecoins,” Allaire said in an interview with Bloomberg. there is a reason.”
Allaire said, “As we like to say, there are so many options, not all stablecoins are designed equal. But from a policy perspective, the only consensus around the world is that it’s a payment system, a discreet regulatory space.” said.
Allaire says it favors a new SEC proposal to include virtual currencies in assets that are generally subject to “qualified custody” requirements.
According to this plan, cryptocurrency Firms will face annual assessments, provide account statements and submit records upon request. This will prevent crypto firms such as exchanges from mixing funds, but will make it more difficult for clients of hedge funds and private equity firms to hold digital assets.
Allaire continued:
“We think it is a very important market structure and very valuable to have qualified custodians that can provide appropriate control structures and bankruptcy protections and other things.
We’ve seen many lessons learned about random exchanges owning your assets. There’s a reason you have this kind of rule.”
*Not investment advice.
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