Dante Disparte, Circle's global head of policy, shared this outlook during a recent interview with CNBC in London, highlighting the urgency for formal legislation in the burgeoning stablecoin market.
Major crypto firm Circle is urging the UK government to introduce stablecoin regulations “imminently.”
According to a recent report by Coin Edition, Circle, the second-largest stablecoin issuer globally, is expressing optimism that the UK will introduce stablecoin regulations within “months, not years.” This comes as Dante Disparte, Circle’s global head of policy, shared his outlook during an interview with CNBC in London.
Highlighting the urgency for formal legislation in the rapidly growing stablecoin market, Disparte warned that without stablecoin regulations, the UK risks falling behind regions like the European Union and Singapore, which have already begun implementing their own regulatory frameworks.
Disparte also reflected on the UK’s cautious approach to crypto regulation, acknowledging the challenges faced by the industry in 2022, including the high-profile collapse of the FTX exchange, where stakeholders are still awaiting refunds in 2024. He noted that the UK’s delay in enacting strict laws may have been prudent, allowing the government to learn from global market upheavals.
However, he cautioned against further delays, saying they could hinder innovation and economic growth. “You can’t have the economy of the future unless you have the money of the future,” Disparte argued. He went on to highlight the potential benefits of stablecoins for the UK’s financial landscape, such as improvements in real-time payments and the digitization of the British pound.
This report also provides a brief overview of the stablecoin market, highlighting its multibillion-dollar size, which is valued at over $170 billion. The report mentions Tether’s USDT as the largest stablecoin with a market capitalization of over $120 billion, followed by Circle’s USDC, which ranks second with a circulating value of over $34 billion.
However, the market has not been without its controversies. The report touches on an incident in 2022 where USDT briefly lost its $1 peg following the collapse of the rival stablecoin Terraform Labs’ terraUSD. This raised questions about whether USDT was truly backed 1:1 by an equivalent amount of dollars and other assets in Tether’s reserves.
Finally, the report mentions that the Bank of England is also exploring the possibility of a central bank digital currency (CBDC), informally known as “Britcoin.” Disparte noted that discussions with Bank of England officials have been promising. While previous Conservative government plans aimed to have stablecoin regulations in place by mid-2023, the current Labour administration has yet to take a strong stance on crypto regulation. However, there are indications that discussions are continuing regarding the UK’s role as a leader in financial technology.