by • Circle CEO Jeremy Allaire believes that payment stablecoins are payment systems, not securities, and should be regulated by banking regulators instead of the SEC.
• Last week, Circle confirmed that it had not been targeted by the SEC following a Wells Notice to Binance USD (BUSD)-issuer Paxos.
• Allaire believes that all flavors of stablecoins should adhere to policy perspectives and be under the oversight of a banking regulator.
Circle CEO Believes Stablecoins Should Be Regulated By Banking Regulators
SEC is not the appropriate regulator for stablecoins: Circle CEO Jeremy Allaire maintains that “payment stablecoins” are payment systems, not securities, and should be regulated by banking regulators instead of the SEC.
Circle Not Targeted By The SEC Following A Wells Notice To BUSD-Issuer Paxos
Last week, Circle confirmed that it had not been targeted by the SEC following a Wells Notice to Binance USD (BUSD)-issuer Paxos.
All Flavors Of Stablecoins Should Adhere To Policy Perspectives
Allaire believes that all flavors of stablecoins should adhere to policy perspectives and be under the oversight of a banking regulator. He stated: “But, clearly, from a policy perspective, the uniform view around the world is this is a payment system, prudential regulator space.”
Stablecoin Regulations Differ Across Countries
The regulations surrounding stablecoin differ across countries; however most countries agree that they should fall under regulatory oversight in some capacity.
Conclusion
In conclusion, Circle CEO Jeremy Allaire believes that payment stablecoins are payment systems which should be regulated by banking regulators rather than the Securities and Exchange Commission (SEC). Last week Circle also confirmed it had not been targeted by the SEC after issuing a Wells notice to Binance USD (BUSD)-issuer Paxos. Furthermore he argued all flavors of stablecoins need to adhere to policy perspectives overseen by banking regulators in order for them to remain compliant with regulations globally.
