Circle CEO Predicts U.S. Stablecoin Laws in 2024

• Circle CEO Jeremy Allaire anticipates concrete crypto regulations around stablecoins in 2024 as the government takes a greater interest in the industry.
• Circle has recently filed a confidential S-1 registration with the U.S. SEC, revealing its ambitions to list publicly.

Circle CEO Jeremy Allaire has in an interview with CNBC shared his prediction on regulations around stablecoins. The CEO revealed that there is a “very good chance” U.S. lawmakers approve a stablecoin bill in 2024.

Speaking at the World Economic Forum in Davos, Switzerland, the CEO explained that governments around the world were taking an interest in crypto industry regulations. The U.S. in particular is showing a desire to introduce and approve laws for the stablecoin industry. Allaire noted;

I think what you’re seeing is a desire from the administration, a desire from the Treasury, from the [Federal Reserve], by both chambers of Congress, and certainly on a bipartisan basis,

The CEO went on to explain that governments are regulating dollar-digital currencies before the United States hence the need for the U.S. to assert its leadership and get the right consumer protections involved. Allaire further spoke on the Clarity for Payment Stablecoins Act that was passed by the House Financial Services Committee, moving to the floor of the House of Representatives for consideration. The bill which is yet to be approved, aims to bring the same regulatory frameworks that govern traditional financial services companies to the stablecon sector.

The CEO also revealed that the approval of a Bitcoin ETF was “definitely a tide that lifts all boats,” when asked whether it would diminish the use case for USDC as an on/off ramp for the cryptocurrency.

Circle Going Public Amidst Stablecoins Laws Debate

Circle, which is the issuer of USD Coin (USDC), a digital stablecoin pegged to the United States dollar, has recently filed a confidential S-1 registration with the U.S. Securities and Exchange Commission (SEC), revealing its ambitions to list publicly. This would make it the second major crypto firm to go public after Coinbase went public in 2021. Coinbase bought a stake in Circle in 2023, which might have influenced the recent plans for Circle to go public.

Interestingly, this is the second attempt by the company after an initial attempt via a special purpose acquisition company in 2022 fell apart. At the time, the deal would have valued the company at about $9 billion.

USD Coin has a market cap of $25.2 billion at the time of press, making it the 7th ranked cryptocurrency. This is a significant drop from its $56 billion in mid-2022 peak. For comparison, the world’s largest stablecoin, Tether, has a market cap of nearly $95 billion. In total, the stablecoin market accounts for $135.3 billion of the cryptocurrency market. Over the years, these coins have facilitated crypto investors with a way to move in and out of the volatile crypto market.

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