Saudi Press

Saudi Arabia and the world
Monday, Sep 22, 2025

Circle CEO to lawmakers: Stablecoins need federal regulation

Circle CEO to lawmakers: Stablecoins need federal regulation

In the wake of FTX’s collapse that has shaken the crypto industry, Circle CEO Jeremy Allaire sent a letter to lawmakers urging them to take rapid action on regulating stablecoins.
“The events of recent days are a painful reminder that a lack of regulatory clarity drives activity offshore in a way that can harm U.S. consumers, investors, companies, and the country as a whole,” Allaire wrote in the letter addressed to House Financial Services Chair Maxine Waters (D-CA) and ranking member Patrick McHenry (R-NC) along with Chairman Sherrod Brown (D-OH) and ranking member Pat Toomey (R- PA) of the Senate Banking Committee.

“Congress should act now to pass comprehensive payment stablecoin legislation," he wrote.

The stablecoin issuer, which issues USDC, called on the leaders of the House Financial Services and Senate Banking Committees to work together to pass bipartisan legislation that would create a national framework for payment stablecoins and their underlying infrastructure as well as safeguards to ensure financial stability and to protect consumers.

Allaire also stressed the need for federal legislation for reserve, redemption, and disclosure requirements, and said stablecoins should be required to be backed, at par, by high-quality liquid assets held in segregated accounts within the U.S. financial system.

Allaire’s comments come as the House Financial Services Committee has stalled on bipartisan legislation to regulate stablecoins.

A bill being worked on by both Waters and McHenry would reportedly place a two-year ban on algorithmic stablecoins and would mandate a study from the U.S. Treasury on tokens like algorithmic stablecoin TerraUSD that crashed this spring. This summer, deliberations were held up over a provision on how to treat digital wallets.

On the Senate side, outgoing Sen. Pat Toomey has put forth draft legislation proposing a new regulatory framework for stablecoins that would subject them to new federal disclosure requirements. Toomey has proposed creating a new federal license to allow companies to issue stablecoins, while still allowing for the state-registered money transmitter status for many existing stablecoin issuers, or insured depository institutions to issue stablecoins.

Allaire said rules are needed as the stablecoin industry is moving from a “dial-up” phase, where payment stablecoins and blockchains have helped to facilitate the buying and selling of digital assets, to a “utility phase,” where stablecoins will be used for buying a cup of coffee to funding a new company.

“Reasonable, workable, and clear legislation can unleash new economic activity, offering businesses and consumers the necessary assurances that the value embedded in payment stablecoins is protected under U.S. law, while shielding consumers and markets from deleterious and irresponsible financial alchemy," Alaire wrote.

Allaire warned the consequences of inaction are significant, including hurting consumers, enabling continued regulatory arbitrage abroad, and stunting U.S. financial services growth.

“Some countries, notably China, are introducing top-down, highly centralized digital versions of their currency," Allaire wrote, "with the goal of outpacing the United States and replacing the dollar as the world’s reserve currency."
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
Top AI Researchers Are Heading Back to China as U.S. Struggles to Keep Pace
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
UAE-US Stargate Project Poised to Make Abu Dhabi a Global AI Powerhouse
Trump and Starmer Clash Over UK Recognition of Palestinian State Amid State Visit
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Kuwait opens bidding for construction of three cities to ease housing crunch.
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Did the Houthis disrupt the internet in the Middle East? Submarine cables cut in the Red Sea
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
×