Stablecoin Legislation Gains Momentum
As U.S. lawmakers push for stablecoin regulations under the Trump administration, Circle and Tether, the two largest stablecoin issuers, have publicly debated their views on compliance. While Circle CEO Jeremy Allaire advocates for U.S. registration requirements, Tether CEO Paolo Ardoino argues that stablecoins already serve U.S. interests by expanding dollar dominance in emerging markets.
A proposed stablecoin bill, introduced by Republican Sen. Bill Hagerty, seeks to enforce stricter backing requirements, including monthly audits and U.S. Treasury reserves. The bill has sparked division within the crypto industry, with concerns over regulatory capture and anti-competitive policies.
Circle Calls for Stricter U.S. Compliance
Circle’s CEO, Jeremy Allaire, emphasized that stablecoin issuers should be required to register in the U.S. if they operate within the country. Circle’s USDC stablecoin is currently the second-largest stablecoin with a $56.6 billion market cap.
“It shouldn’t be a free pass where issuers can ignore U.S. law and sell stablecoins here without proper oversight,” Allaire stated in a Bloomberg interview.
Tether Defends Its Global Reach
In response, Tether CEO Paolo Ardoino dismissed concerns about USDT’s regulatory status, stating that USDT is the most successful tool for U.S. dollar expansion in emerging markets. He argued that stablecoins like USDT support global commerce and should not face unnecessary restrictions.
“While our competitor's business model is to lobby for a ban on Tether, we focus on expanding access to the U.S. dollar in regions that need it most,” Ardoino said.
Crypto Industry’s Divided Reaction
Industry leaders remain divided. Some believe stricter regulations will ensure market stability, while others see it as an attempt by U.S.-based issuers to push out foreign competitors. The debate over stablecoin regulations is expected to continue as the U.S. government finalizes its crypto policy framework.
