Bloomberg has released an interview with the head of Circle, Jeremy Allaire. The interview concerns one of the most discussed topics in the crypto community – the SEC's recognition of stablecoins as securities.
Circle's Jeremy Allaire says banking regulators would be better for overseeing stablecoins than the SEC https://t.co/8nibUU4taW
— Bloomberg Crypto (@crypto) February 23, 2023
Most recently, Paxos received a Wells notification from the SEC, after which issuing new BUSD tokens was suspended. The SEC also filed charges against Do Kwon and Terra Form Labs, recognizing the crypto assets of the Terra ecosystem as securities. This forced the crypto community to presume that by recognizing stablecoins as securities, the SEC wants to take them under its own control.
Jeremy told reporters that he did not consider the SEC to be a suitable regulator for stablecoins. He also explained that when considering stablecoins as a payment instrument, regulation would be better from regulators in the banking sector.
“I don’t think the SEC is the regulator for stablecoins. There is a reason why everywhere in the world, including the US, the government is specifically saying payment stablecoins are a payment system and banking regulator activity.” – said Jeremy.
Jeremy also stressed that despite the fact that stablecoins are completely different, he believes that they are a method of payment, which means they should not fall under the jurisdiction of the SEC.
“There are lots of flavors, as we like to say, not all stablecoins are created equal,” Allaire said. “But, clearly, from a policy perspective, the uniform view around the world is this is a payment system, prudential regulator space.” - said head of the company Circle.
Recently, there were rumors that the issuer of the largest USDC stablecoin also received a Wells notification from the SEC. However, Circle Strategy Director, Dante Disparte denied such rumors and stated that the issuer of the stablecoin had not received a notification from the regulator.
.@circle has not received a Wells notice. https://t.co/lE74zHVLka
— Dante Disparte (@ddisparte) February 14, 2023
Despite disagreements with regulators regarding stablecoins, Jeremy agreed with the SEC commissioner, Hester Peirce. She tweeted that the SEC should coordinate its actions with Congress, due to the lack of a legislative framework to regulate the use of stablecoins.
It’s time for Congress to get busy legislating. That’s what you do when things are new, complex and have broad impact on society. Thanks @HesterPeirce https://t.co/4EaX4RqcE9
— Jeremy Allaire (@jerallaire) February 23, 2023
The head of Circle also supported the SEC's proposal concerning "qualified custodians" and tightening the rules for storing cryptocurrencies.
“We think having qualified custodians that can provide the appropriate control structures and bankruptcy protections and the other things is a very important market structure and very valuable.” – said Jeremy.
It can be surmised that despite the unequivocal position from the head of Circle regarding the regulation of SEC stablecoins, there are some proposals by the regulator that have his support. Recently, there has been a lot of news about the SEC ‘s plans with stablecoins and the crypto industry, and members of the crypto community are actively criticizing the SEC for ambiguity in regulation, so we will continue our observations and share with you the main news!
