Circle CEO Advocates for Mandatory Registration of Stablecoin Issuers in the US
Jeremy Allaire, CEO and co-founder of Circle, is calling for stricter regulations of dollar-backed stablecoins in the United States. In an interview with Bloomberg, he stated that any company offering a stablecoin pegged to the dollar should be registered in the US, whether it is local or offshore.
There shouldn’t be a free pass, right? Where one could just ignore US law and do whatever elsewhere while selling to the US.
This statement comes as Republican Senator Bill Hagerty recently introduced a bill aimed at establishing a specific regulatory framework for dollar-backed stablecoins. This initiative could provide companies with a clear legal framework while preventing certain actors from operating unchecked in the US.
A Clash Between Circle and Tether over Regulation
Allaire’s remarks didn’t go unnoticed. Though he didn’t mention them by name, his speech clearly targeted Tether, the issuer of USDT, which dominates the market with a market capitalization of $142 billion compared to Circle’s $56.27 billion USDC.
On the other hand, Tether CEO Paolo Ardoino fired back on Twitter, accusing Circle of using regulatory means to try and eliminate its competitor instead of innovating. Without explicitly mentioning Circle, he denounced a company seeking to influence US regulators to “kill Tether”.
USDT vs USDC: A Battle with Colossal Financial Stakes
Beyond these war of words lies a major economic showdown. Stablecoins are a fundamental pillar of the crypto market, serving both transactions and international transfers. With a market totaling $232 billion, these digital assets generate significant revenue through US-backed securities held in reserve.
While USDT remains the leader, USDC is gaining ground. Its market capitalization has grown by 28% since the beginning of the year, especially due to the arrival of MiCA in Europe, compared to only 3.3% for Tether. Circle hopes that regulation will strengthen its position, while Tether defends its more decentralized model.
Towards a More Structured Legislative Framework?
With the Trump administration appearing more favorable to cryptocurrencies and Bill Hagerty’s bill, a more structured regulatory framework for stablecoins in the US seems inevitable. However, the outcome of the battle between Circle and Tether could determine the shape this regulation takes: an open market for all or a stricter environment where only registered actors have a say.
