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Stablecoin issuers must comply with U.S. laws, says Circle CEO. He stressed financial security, consumer protection, and transparency amid ongoing regulatory discussions. The CEO of Circle, Jeremy Allaire, has emphasized that stablecoin issuers should comply with U.S. regulations if they intend to operate within the country. However, he said that no matter the location of a company, rendering a dollar-backed stablecoin in the US means complying with registration requirements. This will guarantee consumer protection and financial security. Bloomberg reports that the stablecoins have attracted tremendous interest in the crypto market as of late. A regulatory measure on digital tokens is also one of the priorities for the second Trump administration. Senator Bill Hagerty recently introduced legislation to create a structure for stablecoins. Additionally, President Donald Trump has vowed to make the U.S. the leading nation in cryptocurrency globally. Stablecoin Market Needs Transparency and Compliance, Says Allaire Allaire has strongly criticized companies that try to breach American law by working from offshore locations and still tackling American consumers. Such practices could tamper with financial integrity and raise risks of investors, he said. He felt that such businesses dealing with stablecoins should be subjected to the same legal requirements as other financial institutions. The second biggest stablecoin is USD Coin (USDC) and is issued by New York’s Circle. Tether on the other hand is currently headquartered in El Salvador, a nation that is very friendly towards cryptocurrencies. Stablecoins are crucial in the digital economy, they become a bridge between cryptocurrencies and traditional finance. They are also utilized to be involved with trading and stabilizing against the volatility of another digital currency. Allaire also said regulatory oversight was needed to protect consumers and strengthen financial systems. He said that if companies based offshore want to sell a dollar-backed stablecoin in the US, they…

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Filed under: News - @ February 26, 2025 9:19 am