Jeremy Allaire, CEO and Co-Founder of Circle ($USDC), has called for global stablecoin issuers to register with U.S. authorities, regardless of their geographical location. Circle, the company behind USD Coin ($USDC), the world’s second-largest stablecoin, believes mandatory registration is necessary to ensure consumer protection and financial stability.
In an interview with Bloomberg, Allaire emphasized that U.S. dollar-backed stablecoin issuers should not be allowed to operate freely without oversight.
“Whether you are an offshore company or based in Hong Kong, if you want to offer your U.S. dollar stablecoin in the U.S., you should need to register in the U.S., just like we have to register everywhere else,” he stated.
His remarks come as U.S. legislators, including Representatives French Hill and Bryan Steil, introduce a draft bill aimed at regulating dollar-pegged payment stablecoins. The bill aligns with the Trump administration’s broader push to bring stablecoins under regulatory oversight, a move that President Trump’s crypto advisor, David Sacks, suggests could reinforce the U.S. dollar’s dominance globally.
Tether Under Pressure as Regulatory Scrutiny Mounts
Meanwhile, Tether – the issuer of the world’s largest stablecoin, USDT – faces mounting pressure from regulators and competitors. Tether CEO, Paolo Ardoino, suggested in a recent post that political and industry forces are actively trying to push the company out of the market.
“While our competitors’ business model should be to build a better product and expand their network, their real intent is ‘Kill Tether,’” he wrote.
Tether’s exclusion from the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework has added to its challenges. Major crypto exchanges, including Kraken and Crypto.com, have responded by delisting $USDT and several other stablecoins to comply with MiCA regulations. Kraken will remove Tether by March 31 2025, while Crypto.com has already delisted it as of January 31 2025.
🇬🇳 MILESTONE | @Tether_to Partners with the Republic of Guinea, the First Govt Partnership in Africa
This builds on Tether’s strong track record of working with govts and institutions worldwide to promote responsible blockchain adoption.https://t.co/EJfBoWhsW6 $USDT pic.twitter.com/7lxQ36sTEM
— BitKE (@BitcoinKE) February 20, 2025
As reported by BitKE, $USDT wallets have increased 71% in the past year (2024) and 129% the year before, driven primarily by wallets holding less than $1,000. The growth is largely fuelled by adoption in emerging markets, including Africa.
STABLECOINS | Majority of New $USDT Users Are Coming from Emerging Markets, Including African Cities, Says a Bloomberg Analysis
According to Ardoino, Tether has just over 300 million users globally.https://t.co/DQz6v1xCHi @Tether_to @paoloardoino pic.twitter.com/jXthoNYyGt
— BitKE (@BitcoinKE) November 6, 2024
With regulatory landscapes evolving worldwide, the stablecoin sector is at a critical juncture. While Circle advocates for stricter oversight, Tether fights to maintain its market position. As governments tighten control over digital assets, the future of stablecoins – and their role in global finance – remains uncertain.
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