US Registration Needed for All Dollar-Based Stablecoins
Circle’s co-founder Jeremy Allaire has called for mandatory registration of all US dollar-backed stablecoin issuers with American regulators, regardless of their geographic location. According to Allaire, stablecoin firms should not be able to sidestep US laws while offering services to American consumers.
Consumer Protection and Fair Competition
Allaire emphasized that allowing foreign-based stablecoin issuers to operate in the US without oversight creates unfair competition and risks for users. He stated:
“Whether you are an offshore company or based in Hong Kong, if you want to offer your US dollar stablecoin in the US, you should need to register in the US just like we have to go register everywhere else.”
Regulatory Push from US Lawmakers
Allaire’s remarks follow the introduction of a draft bill by US representatives French Hill and Bryan Steil, aiming to establish a regulatory framework for dollar-pegged stablecoins. The bill aligns with the Trump administration’s efforts to regulate stablecoins and reinforce the dominance of the US dollar in global markets.
Tether Faces Mounting Pressure
Meanwhile, Tether, issuer of the world’s largest stablecoin, USDT, is reportedly facing increasing scrutiny. Co-founder Paolo Ardoino has claimed that competitors and politicians are seeking to push Tether out of the market, further intensifying the regulatory landscape for stablecoin issuers.
With US regulators ramping up efforts, stablecoin firms may soon be required to comply with stricter guidelines, reshaping the industry’s global operations.
