Club CEO sees ‘great opportunity’ for stablecoin rules this year: Report
Club CEO Jeremy Allaire is confident the United States will enact the long-awaited stablecoin rule in 2023.
“I think there's momentum. I think there's a very good chance we'll see it enacted this year.
Allair made the comments in an interview with CNBC on Jan. 15 at the annual meeting of the World Economic Forum in Davos, Switzerland.
“Digital dollars are happening all over the world, other governments are regulating dollar digital currencies before the United States. So I think there's a very strong need to act and assert American leadership and involve proper consumer protection.”
Allair, who runs the firm behind the stablecoin USD Coin (USDC), recently said he is seeing progress from lawmakers, courts and regulators around the country.
“I'm hoping that a stable coin policy for payments could be in place early in the new year. That's going to be a small increase in the bilateral reality,” the company's chief strategy officer and head of global public policy, Dante Departe, added to CNBC.
The Payment Transparency Stablecoins Act, introduced by US Representative Patrick McHenry, is one of the stablecoin bills on the House and Senate's review list. It aims to provide stable coin issuers with a regulatory framework similar to that of traditional financiers.
The Stablecoin Transparency Act was introduced into Congress on March 31, 2022 by Senator Bill Hagerty.
Meanwhile, Circle has strongly pushed the stable coin rule over the past few years. The firm began negotiations with strategic consulting firm Invariant in late 2021 and has since spent an estimated $760,000 on lobbying efforts, ProPublica reported.
Following the recently approved and launched Bitcoin (BTC) exchange-traded funds, Allaire hopes further regulatory developments will follow.
“It's been a really powerful time for that, and we think 2024, with things like spot ETFs and global regulatory transparency, will open that up even more.”
Related: Wallets with USDC stablecoin in 2018 By 2023, circulation has decreased but increased by 59%.
However, the department said lawmakers may still be concerned about the use of stablecoins to facilitate criminal activities.
“You have seen the conflict in the Middle East [with] The use of certain digital assets in space as a vehicle for terrorist financing […] Domestically in the United States, you can see certain assets being used as a vehicle to fund fentanyl trafficking in space,” he said.
“Until this is resolved, that is against the interests of the country. [and] the economy”
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