Stablecoin issuers worldwide should be required to register with US authorities, according to Jeremy Allaire, co-founder of Circle, the company behind the world’s second-largest stablecoin.
US legislators should introduce mandatory registration requirements for firms issuing US dollar-based stablecoins, such as Circle’s USD Coin (USDC), regardless of the company’s physical location, Allaire said.
Citing consumer protection, Allaire argued that US dollar-based stablecoin issuers should not get a “free pass,” enabling them to “ignore the US law and go do whatever the hell you want wherever and sell into the United States.” Allaire told Bloomberg:
“Whether you are an offshore company or based in Hong Kong, if you want to offer your US dollar stablecoin in the US, you should need to register in the US just like we have to go register everywhere else.”
Allaire’s comments come shortly after US representatives French Hill and Bryan Steil introduced a draft bill that would establish a regulatory framework for dollar-pegged payment stablecoins in the world’s largest economy.
The draft bill’s release follows confirmation from the Trump administration that it plans to regulate and bring stablecoins onshore. President Donald Trump’s Crypto Czar, David Sacks, said stablecoins could “extend the dollar's dominance internationally.”
Meanwhile, the co-founder of Tether, the issuer of the world’s largest stablecoins USDt (USDT), said the firm is facing increasing pressure from competitors and politicians aiming to push Tether out of the crypto market.
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Competitors and politicians intend to ‘kill Tether’
Tether is facing mounting pressure, wrote Paolo Ardoino, the CEO of Tether, in a Feb. 25 X post.
“While our competitors business model should be to build a better product and even bigger distribution network, their real intent is ‘Kill Tether.’”
“Every single business or political meeting that they have culminates with this intent,” he added.
Source: Paolo Ardoino
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Ardoino’s comments follow Tether’s exclusion from the list of 10 firms approved to issue stablecoins under the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.
Tether has faced growing regulatory challenges in Europe since MiCA regulations went into effect at the end of 2024.
To comply with Europe’s MiCA regulation, crypto exchange Kraken said it would delist five stablecoins, including Tether’s USDT, starting March 31.
Crypto.com, another major exchange, confirmed it would also delist USDT and nine other stablecoins starting Jan. 31, 2025.
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