Jeremy Allaire, co-founder of financial technology company Circle, calls for the registration of dollar stablecoin issuers in the US.
Recently, stablecoins have become a hot topic in the crypto market, receiving more attention than ever as regulatory scrutiny is ramped up. One of the first issues expected to be tackled in a second Trump administration would be legislation governing digital tokens.
Earlier this month, Senator Bill Hagerty, Republican of Tennessee, introduced a bill to establish the regulatory framework for stablecoins. President Donald Trump has vowed to make the US “the world’s leader” in crypto.
“It can’t be a free pass, right?” Allaire said in an interview with Bloomberg News. “Where you can just violate the US law and just go do whatever the damn you want wherever and then sell into the United States.”
Circle is based in New York and is the issuer of USDC, the second-largest stablecoin in the market after Tether Holdings SA’s USDT. Tether, one of the largest stablecoins by market capitalization, has reportedly relocated its headquarters to El Salvador, a crypto-friendly country embracing digital currency.
USDC and USDT are stablecoin digital assets that act as a bridge between cryptocurrencies and traditional financial systems. Their main function is maintaining price stability, usually by pegging them to a stable asset like the US dollar. This makes them a useful tool for traders and investors needing to change funds quickly without exposure to the high volatility of most cryptocurrencies.
Registering dollar stablecoin issuers protects consumers
Allaire noted that the regulation is related to consumer protection and financial integrity. Any company, he said, whether it is offshore or based in Hong Kong, should have to register in the United States to offer a dollar-backed stablecoin.
A Tether spokesperson declined to comment on the matter. However, earlier on Tuesday, Tether’s CEO Paolo Ardoino also responded on X to speculation that the largest cryptocurrency companies act to benefit themselves as US legislation passes.
Some of Tether’s reserves are managed by Cantor Fitzgerald LP, who’s former chief executive officer, Howard Lutnick, was recently confirmed by the Senate as the US Secretary of Commerce. This shift elevates a central figure with close ties to financial markets into a powerful government role.
In January, Trump signed an executive order to protect the US dollar, cementing the US government’s partnership with stablecoin publishers like Circle and Tether.
Circle expands, Dubai recognizes USDC and EURC as official stablecoins
The Dubai Financial Services Authority (DFSA) has officially approved Circle’s stablecoins, USDC, and EURC as recognized tokens under the authority’s crypto regime — the first stablecoins approved under the regime.
Due to this new status, the Dubai International Financial Centre (DIFC) companies can now integrate the two stablecoins into various digital asset applications, including payments, treasury management, and services.
Dubai becomes the latest region to recognize USDC and EURC as official stablecoins in Circle’s expansion strategy. Circle CEO emphasized that stablecoin issuance should be registered in the United States, stating that his calls are not political and that his company has always registered in the jurisdictions that it serves.
Notably, Dubai’s financial regulator recently welcomed Circle’s USDC and EURC stablecoins, indicating a big leap for digital assets in the region. Both tokens were approved as of October 16, 2023, under the newly created regulatory framework of the DIFC, an autonomous economic zone.
The UAE approving Circle’s USDC and EURC stablecoins was a historic first. It made Circle the first stablecoin issuer granted clearance to operate in Dubai, cementing its place in the global crypto landscape and validating its stablecoins as prominent tools in the burgeoning digital economy.
Circle also received several key regulatory approvals in other key jurisdictions throughout 2024. The firm has complied with recent new crypto asset regulations passed into law in the European Union and Canada, signaling its willingness to work with regulated ecosystems worldwide.
Meanwhile, fellow Tether rival has expanded its presence in the UAE. The company was granted approval for its USDT stablecoin in the Abu Dhabi Global Market (ADGM), yet another major financial hub within the region, in late 2024. Tether’s action shows a rising adoption of stablecoins in the UAE and the wider Middle East, as governments and financial sector players acknowledged the value of stablecoins in enabling cross-border payments, financial inclusiveness, and digital assets.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear