Circle CEO Eyes Stablecoin Law in 2024

Circle CEO Jeremy Allaire is optimistic that the U.S. will enact a key stablecoin legislation in 2023.

He expressed his confidence during a CNBC interview on January 15 at the World Economic Forum in Davos, Switzerland, stating, “I think there’s momentum. I think there’s a very good chance of seeing this pass into law this year.”

Allaire highlighted the global trend of digital dollar adoption and the urgency for the U.S. to regulate and take the lead in this area, emphasizing the need for appropriate consumer protections.

Allaire, leading the company responsible for the USD Coin stablecoin, noted recent advancements among legislators, the judiciary, and regulatory bodies in the U.S. Dante Disparte, Circle’s chief strategy officer and head of global public policy, also shared optimism about the early passage of a payments stablecoin policy, acknowledging its bipartisan support.

The U.S. Congress is considering several stablecoin-related bills, including the Clarity for Payment Stablecoins Act by Representative Patrick McHenry, which proposes a regulatory framework for stablecoin issuers akin to that of traditional financial entities.

Another notable bill is the Stablecoin Transparency Act, introduced by Senator Bill Hagerty on March 31, 2022.

Circle has been actively advocating for stablecoin legislation, engaging the consulting firm Invariant in late 2021 and reportedly spending around $760,000 on lobbying since then, as per ProPublica.

With the recent introduction of spot Bitcoin exchange-traded funds, Allaire anticipates further regulatory progress, saying, “It’s been a really powerful time for that, and we think 2024, with things like the spot ETF and world regulatory clarity, is going to open this up even wider.”

However, Disparte pointed out the concerns lawmakers have about the potential misuse of stablecoins in illicit activities.

He cited examples of digital assets being used for terrorism financing in the Middle East and for funding fentanyl trafficking in the U.S., stressing the importance of addressing these issues for the nation's and economy's benefit.

Sources:

https://cointelegraph.com/news/circle-ceo-jeremy-allaire-good-chance-approved-stablecoin-laws

https://www.cnbc.com/2024/01/15/good-chance-us-passes-stablecoin-laws-this-year-circle-ceo-says.html

https://www.congress.gov/bill/117th-congress/senate-bill/3970/all-info

https://projects.propublica.org/represent/lobbying/r/301035432