Circle CEO Jeremy Allaire Calls for Mandatory US Registration of Stablecoin Issuers
The debate over stablecoin regulation in the United States is intensifying, with Circle CEO Jeremy Allaire calling for mandatory registration of all dollar-backed stablecoin issuers operating there. In a recent interview with Bloomberg, Allaire argued that non-U.S. stablecoin providers should not be allowed to circumvent American regulations while still serving U.S. customers. His comments come amid growing legislative efforts, including Senator Bill Hagerty’s introduction of a stablecoin framework and President Donald Trump’s push to establish the U.S. as a global crypto leader. Allaire’s stance contrasts Circle with Tether, the largest stablecoin issuer. Tether’s CEO, Paolo Ardoino, has accused competitors of trying to undermine USDT through regulatory maneuvers.
Circle CEO Jeremy Allaire Calls for U.S. Registration of Stablecoin Issuers
Circle CEO Jeremy Allaire seems to back a walled-garden approach to stablecoin regulation, saying issuers of dollar-pegged tokens should have to register in the U.S. In the interview, Allaire raised concerns about stablecoin issuers outside the U.S., saying there “shouldn’t be a free pass.”
“It shouldn’t be a free pass, right? Where you can just ignore the U.S. law and go do whatever the hell you want wherever and sell into the United States.” Allaire’s comments come as Senator Bill Hagerty recently proposed a framework for stablecoin issuers while President Donald Trump has promised to make the U.S. a crypto hub. Circle’s efforts might potentially affect its main rival and the largest stablecoin issuer by market capitalization, Tether, which recently moved its headquarters to Bitcoin-friendly El Salvador.
“This is about consumer protection and financial integrity. Whether you’re an offshore company or based in Hong Kong, if you want to offer your dollar stablecoin in the U.S., you should need to register in the U.S. just like we have to go register everywhere else.” Notably, USDC by Circle has recently become the only legal stablecoins recognized by the Dubai Financial Service Authority (DIFC).
Tether CEO Paolo Ardoino Responds to U.S. Stablecoin Regulation
Tether CEO Paolo Ardoino has strongly opposed what he describes as competitors’ attempts to use regulatory tactics to undermine USDT, the world’s largest stablecoin. In a post on X, Ardoino highlighted Tether’s widespread adoption in emerging markets and accused rival stablecoin issuers of engaging in “lawfare” using legal and regulatory frameworks to stifle competition.
Ardoino’s remarks were in addition to a post by Vance Spencer, co-founder of Framework Ventures, who warned that the upcoming U.S. stablecoin regulation could restrict foreign stablecoin issuers from accessing the U.S. Treasury market. Spencer argued that such restrictions would harm international stablecoin issuers like Tether and undermine the global dominance of the U.S. dollar. Ardoino pointed to Tether’s extensive distribution network, which spans digital remittance platforms, institutional payment backbones, thousands of physical kiosks, and underserved communities in Africa and South America.
According to Ardoino, Tether’s strategic holdings of over $115 billion in U.S. Treasuries make it the 18th largest holder of these assets. The stablecoin serves over 400 million people worldwide. However, he expressed concern that instead of fostering competition through innovation, rival stablecoin issuers are seeking to cripple Tether through regulatory means. He accused competitors of using political influence to push for regulations hindering USDT’s growth, warning that such tactics could ultimately harm communities that rely on stablecoins for financial stability.
As it stands now, this seems to be a fight between competitors looking for maximum scrutinization of stablecoin issuers and the other seeking a more balanced regulation to foster innovation and growth. While the government has yet to make a clear decision, the future of U.S. recognition in the stablecoin world hinges on the regulators’ decisions, as stablecoins play an increasingly crucial role in global transactions and U.S. economic strategy.