Jeremy Allaire Calls for Global Stablecoin Issuers to Register with U.S. Authorities

Jeremy Allaire, CEO and Co-Founder of Circle ($USDC), has called for global stablecoin issuers to register with U.S. authorities

Jeremy Allaire, CEO and co-founder of Circle (USDC), is calling for global issuers of U.S. dollar-pegged stablecoins to register with U.S. authorities, regardless of their geographical location.

In an interview with Bloomberg, Allaire highlighted the importance of mandatory registration for issuers of dollar-backed stablecoins to ensure consumer protection and financial stability. He expressed concern over offshore companies or companies based in Hong Kong offering U.S. dollar stablecoins without needing to register in the U.S., while Circle is required to register in every country where it operates.

“If you are an offshore company or a company in Hong Kong and you want to offer your U.S. dollar stablecoin in the U.S., you should be required to register in the U.S., just like we have to register everywhere else,” Allaire said.

The interview comes as U.S. legislators, including Representatives French Hill and Bryan Steil, are drafting a bill to regulate dollar-pegged payment stablecoins. The bill is intended to bring stablecoins under the regulatory umbrella, a move that President Trump’s crypto advisor, David Sacks, believes could be a masterstroke to increase the U.S. dollar’s dominance globally.

The Trump administration has been pushing for tighter regulation of crypto assets, aiming to bring them in line with traditional financial assets.

The administration is also planning to propose legislation requiring U.S. Treasury Department approval for any new digital currencies issued by foreign governments, in a move to prevent other countries from outpacing the U.S. in the digital asset domain.

As for Tether, the issuer of the world’s largest stablecoin USDT, it appears to be facing increasing pressure from regulators and competitors. Tether CEO Paolo Ardoino recently suggested in a post that political and industry forces are maliciously 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,'” Ardoino wrote.

Moreover, Tether has been excluded from the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, a move that major crypto exchanges like Kraken and Crypto.com responded to by deciding to delist $USDT and several other stablecoins to comply with MiCA regulations. Kraken will be removing Tether by March 31 2025, while Crypto.com has already delisted it as of January 31 2025.

This development comes as a new report from Bloomberg revealed that the majority of new users of Tether’s (USDT) stablecoin in 2024 are coming from emerging markets, including African cities.

According to the report, which cites data from blockchain analytics firm TRONSCAN, about 71% of new USDT wallets in the past year are holding less than $1,000, a stark contrast to the behavior of users of Circle’s USD Coin (USDC), the second-largest stablecoin.

"The bulk of the new users, especially in the second half of the year, are in emerging markets, including Vietnam, the Philippines, and Uzbekistan, in addition to African cities like Lagos, Cairo, and Johannesburg," the report stated.

According to Ardoino, Tether has just over 300 million users globally.

The news arrives as the Bank of Uganda announced it would start buying gold locally to boost the country’s declining foreign reserves and buffer it against "international financial markets risks."

The move, which was reported by Bloomberg on Monday, February 19, marks a significant shift in strategy for the bank, which has traditionally relied on foreign exchange reserves to manage macroeconomic stability.

However, as the value of the U.S. dollar and other major currencies has soared, emerging market currencies and foreign exchange reserves have taken a hit, leaving countries like Uganda vulnerable to external economic shocks.

The development also comes amid a broader trend of central banks increasing their gold holdings as they seek to diversify their reserves and reduce reliance on the U.S. dollar.

As regulatory landscapes evolve worldwide, the stablecoin sector is at a critical juncture. While Circle is calling for stricter oversight, Tether appears to be facing pressure to maintain its market position.

With governments tightening their grip on digital assets, the future of stablecoins—and their role in global finance—remains uncertain.