Jeremy Allaire, the man at the helm of stablecoin giant Circle Internet Financial, lauded the United States Congress for its latest legislation aimed at regulating stablecoin. The new draft of the bi-partisan US Stablecoin Bill was recently unveiled following collaboration between Democratic and Republican members of the US House Committee on Financial Services.
Circle CEO Jeremy Allaire took to Twitter earlier today to reflect on the bi-partisan US stablecoin draft:
1/ Congress will hold another major hearing next Tuesday on the Future of Digital Assets and Regulatory Clarity. And yesterday a major new draft of the US Stablecoin Bill was published that represents material progress between @FinancialCmte & @FSCDems. A thread below. 🧵
— Jeremy Allaire (@jerallaire) June 9, 2023
Jeremy Allaire’s comments came ahead of next week’s hearing on the Future of Digital Assets and Regulatory Clarity. Allaire is set to testify before the House Financial Services Committee. The witness list includes Ava Labs founder Emin Gün Sirer, NFA News CEO Thomas Sexton III, and Coy Garrison, former counsel to SEC Commissioner Hester Pierce.
According to Allaire, the draft bill represented material progress on key issues related to the Federal Reserve’s standards and rules, treatment of algorithmic stablecoins, interoperability standards, custody, consumer protection, and other crucial rules that would help traditional finance firms venture into digital asset custody.
The draft bill would strengthen the ability of federal regulators to set the fundamental floor for qualifying as a payment stablecoin issuer while preserving the role of states in a dual-banking system model for stablecoins. The bill would also provide detailed language around custody, safekeeping, and funds segregation in the interest of investor protection.
The Circle CEO added that bi-partisan would reintroduce a moratorium on algorithmic stablecoins and pave the way for the National Institute of Standards and Technology (NIST) to contribute to future stablecoin interoperability standards.
Jeremy Allaire noted that the latest draft bill reflected significant efforts between the two sides of the government and represented the potential for a bi-partisan effort to introduce much-needed legislation for the regulation of the country’s crypto industry. The Circle executive added that the bill represented a major opportunity for the US government to take the lead in establishing crypto policy.
