Circle’s Jeremy Allaire Argues That U.S. Regulations Are Critical in the Stablecoin Market

He calls for all stablecoin issuers, no matter their location, to register under U.S. laws for enhanced regulatory oversight.

Circle cofounder Jeremy Allaire has called for stablecoin issuers to be registered in the U.S.

In a post on X, Allaire said that stablecoins pegged to the U.S. dollar should follow U.S. regulations to maintain financial integrity and consumer protection.

"It is critical that any issuer of a stablecoin pegged to the U.S. dollar, whether based offshore or in the U.S., register to sell such products to U.S. consumers in accordance with U.S. law," he said.

"This ensures fairness and legal compliance for all issuers, wherever they may be located. These regulations are crucial to maintain financial stability and protect consumers in the growing digital asset market."

Allaire's comments come as stablecoins are facing increasing scrutiny, with U.S. lawmakers introducing new legislation to regulate these digital assets.

Earlier this week, Senator Bill Hagerty, R-Tenn., introduced legislation that would create a framework for stablecoins.

The legislation would require stablecoin issuers to hold reserves in a segregated account and would subject them to regular audits.

Hagerty's bill is the latest in a series of legislative proposals that would regulate stablecoins.

House Financial Services Chair Maxine Waters, D-Calif., is also working on legislation that would create a regulatory framework for stablecoins and other digital assets.

The Trump administration has expressed strong support for stablecoin issuers, and it is likely that the administration will play a role in shaping the regulatory landscape for these assets.

Allaire's comments suggest that he is supportive of a regulatory framework for stablecoins, but he believes that these coins should be subject to U.S. regulations, even if the issuers are based offshore.

This contrasts with the view of some other digital asset executives, who have argued that crypto companies should be able to choose the jurisdictions that best suit them.

For example, Tether, the issuer of the world's largest stablecoin, recently moved its headquarters to El Salvador.

However, Allaire believes that stablecoins pegged to the U.S. dollar should be subject to U.S. regulations in order to protect American consumers and maintain the financial stability of the U.S. financial system.