Jeremy Allaire: 2024 is the Perfect Time for Stablecoin Regulation Law
Date: 2024-01-16 Author: Dima Zakharov Categories: BUSINESS
The Rise of Stablecoins:
Stablecoins, cryptocurrencies pegged to traditional currencies like the US dollar, have been gaining prominence worldwide. Many governments have already begun regulating these stable cryptocurrencies, leaving the United States with the challenge of catching up. Allaire emphasized that to secure its leading position in the payment sphere, the US must ensure proper consumer protection.
2024: The Right Time for Regulation:
Allaire confidently stated, "After the approval of Bitcoin exchange-traded funds (ETFs), cryptocurrency regulation is bound to change. 2024 is the most suitable time for this shift." He believes that the approval of ETFs for Bitcoin will pave the way for comprehensive cryptocurrency regulation.
Challenges and Concerns:
Dante Disparte, Circle's Director of Strategic Development, also hopes for a clear policy on stablecoin payments in the US early this year. However, legislators remain concerned that stablecoins could be used for financing terrorism or illegal drug trafficking, as noted by Disparte.
Legislative Initiatives:
One notable legislative proposal concerning stablecoins is championed by Patrick McHenry, Chairman of the House Financial Services Committee. McHenry advocates for stablecoin issuers to adhere to the same legal norms as traditional financial companies. Additionally, Senator Bill Hagerty introduced a transparency bill for stablecoins to Congress on March 31, 2022.
Circle's Advocacy:
Circle has been actively pushing for stablecoin regulation for the past few years. Since 2021, the company has spent $760,000 on lobbying efforts.
