2 years ago
Circle CEO Jeremy Allaire has warned astir the risks facing the crypto marketplace owed to vulnerability to the U.S. Dollar and the regulatory hazard successful the U.S. fiscal system.
In a March 23 Twitter thread, Allaire said determination “seems to beryllium a large-scale risk-off from USD that is exposed to US banks and US regulatory risk.”
The CEO stated that determination is wide marketplace anxiousness revolving astir the large-scale nonaccomplishment of the US banking strategy and the assertive regulatory actions connected crypto.
He noted the irony of companies with the highest level of compliance with US regulations and are astir integrated with the banking strategy facing issues. This radical is presently considered unsafe owed to concerns astir assets being stranded.
Allaire added that a macro hazard was besides driving rotation from USD into flagship integer assets — Bitcoin and Ethereum
Calls for regulation
The Circle CEO urged U.S. policymakers to beryllium cautious astir their adjacent steps.
He noted that their actions person started forcing marketplace participants retired of the U.S. into poorly regulated jurisdictions with higher risks and lax controls.
As such, Allaire said that the existent concern calls for a “clear, coherent and pragmatic policy” if the U.S. does privation to suffer its presumption arsenic a person successful the blockchain exertion space.
USDC remains strong
Meanwhile, Allaire noted that Circle would proceed to operate wrong the regulatory framework and comply with the highest standards and transparency.
He added:
“USDC has not missed a beat, we person ne'er failed to mint oregon redeem USDC for $1, including during the past weeks accent test. As of past week, successful the past year, we person redeemed $192.4B USDC astatine $1, and issued $176.9B astatine $1.”
The CEO besides stated that Circle is adding caller transit and colony banking partners to guarantee that it tin process issuance and redemptions of integer dollars 24/7 and passim the year.
The station Circle CEO says ‘aggressive regulatory actions’ connected crypto caused ‘deep marketplace anxiety’ appeared archetypal connected CryptoSlate.
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