Circle CEO Urges U.S. Cooperation in Crypto Regulation

US authorities should collaborate with representatives of the blockchain industry in shaping regulatory requirements. This was noted by Circle CEO Jeremy Allaire in a letter to the US Treasury.

1/2 Earlier today I sent this letter to the Senior Staff of the US Treasury Department. This is a critical moment for the crypto and digital currency industry. The US govt may be putting a massive transformation at risk. @stevenmnuchin1 @USTreasury https://t.co/fGdv0kgvw2

— Jeremy Allaire (@jerallaire) December 10, 2020

In his view, some of the proposed measures threaten the industry and the United States’ competitive standing. One of them, Allaire said, is the possible restriction on the use of local cryptocurrency wallets.

The head of the company noted that the proposal “unduly underestimates” real risks and gives an advantage to Chinese entities. He urged regulators to work with the industry to develop rules and supervisory frameworks.

Allaire’s view aligns with the position of several US lawmakers who on December 9 urged the Treasury to comment on the rumors about possible restrictions for non-custodial wallets. In the letter they noted that the initiative would hamper the United States’ leadership in technological innovation.

In late November, Coinbase CEO Brian Armstrong said that Treasury Secretary Steven Mnuchin planned to introduce mandatory verification of non-custodial wallet owners before his departure from office.

Earlier Allaire criticized the bill, which would require stablecoin issuers to obtain banking licenses and regulatory approval.

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