Secure US Dollar’s Dominance: Protect Stablecoins Now, Warns Circle CEO

• Circle CEO Jeremy Allaire warns that the US dollar’s global dominance is at risk without protection and regulation of stablecoins.
• Congress is debating stablecoin legislation, with debates surrounding the authority of the Federal Reserve and oversight of stablecoin issuers.
• Allaire urges political leaders to carefully consider the implications for the competitiveness of the US dollar as they prepare for a vote on stablecoin laws.

Circle CEO Warns: Protect Stablecoins or Risk Dollar’s Global Dominance

Circle CEO Jeremy Allaire has warned that without protection and regulation of stablecoins, the US dollar’s position as the world reserve currency is at risk. He urges political leaders to carefully consider the implications for the competitiveness of the US dollar as they prepare for a vote on stablecoin laws.

Stablecoin Legislation Under Debate

The House Financial Services Committee (HFSC) is currently engaged in debates over stablecoin legislation as they prepare for an upcoming vote. Democrats and Republicans have found themselves at odds regarding various aspects of proposed regulations, including how much authority should be given to Federal Reserve in overseeing stablecoin issuers. Given recent crackdown by U.S Securities and Exchange Commission (SEC) on cryptocurrency firms, Circle urges lawmakers to establish a legal framework that offers clarity and compliance pathways.

Maintaining Global Dominance

In his plea to Congress, Jeremy Allaire stresses that embracing digital currencies such as stablecoins is crucial for the US dollar to retain its position in global economic system. He points out that other countries are already moving towards issuing their own sovereign cryptocurrencies such as China’s digital yuan while Europe has madea commitment to creating Euro-backed tokens by 2025 if their current efforts are successful.

Stellar’s USDC Gains Momentum

Amidst all this discussion about regulation, Stellar’s USD Coin (USDC), which is issued by Circle, has been gaining momentum in terms of market capitalization making it second largest after Tether (USDT). With over $7 billion now circulating around financial systems worldwide, it appears that many investors trust USD Coin with their funds due to its transparent audits and compliance with money transmission regulations .

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