- Circle CEO Jeremy Allaire maintains that stablecoins are payment systems and not securities.
- Allaire argues that stablecoin regulation should not be assigned to the US Securities and Exchange Commission.
- Circle’s stablecoin USD Coin has suffered a temporary de-peg plummeting to $0.9961, losing its $1 parity with the US Dollar.
Circle CEO Jeremy Alliare maintains that US financial regulator SEC should not regulate stablecoins. USD Coin (USDC), the stablecoin issued by Circle temporarily lost its $1 parity with the US Dollar.
SEC is not the appropriate regulator for stablecoins: Circle CEO
Circle CEO Jeremy Allaire told Bloomberg in a recent interview that the US Securities and Exchange Commission should not be tasked with the regulation of stablecoins. Allaire maintains that stablecoins are payment systems and not “securities.”
Allaire was quoted as saying:
I don’t think the SEC is the regulator for stablecoins. There is a reason why … [governments are] specifically saying payment stablecoins are a payment system and banking regulator activity.
When the SEC issued a Wells Notice to Paxos, the issuer of the stablecoin Binance USD (BUSD), Circle maintained its stance that “not all [stablecoins] are created equal.” According to Circle, since stablecoins like USDC are payment systems, it implicitly excludes stablecoins from being classified as securities.
USDC temporarily loses its peg
Circle issued stablecoin USDC temporarily lost its $1 parity with the US Dollar. USDC nosedived to $0.9961, a 24-hour low, before climbing back to the $1 level. The stablecoin has suffered a temporary de-peg several times since February 23, as seen in the chart below:
USDC price chart
The US SEC has yet to comment on its stance on Circle’s stablecoin. The US financial regulator recently started its crackdown on stablecoin issuers, and cryptocurrency exchange platforms.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.