Circle CEO Jeremy Allaire is calling for mandatory registration of all stablecoin issuers operating in the United States. In a recent interview with Bloomberg, Allaire argued that non-U.S. stablecoin providers should not be able to bypass American regulations while still serving U.S. customers. This comes at a time when there are increasing efforts to regulate stablecoins, including Senator Bill Hagerty’s proposal for a stablecoin framework and President Donald Trump’s push to establish the U.S. as a global crypto leader. Allaire’s stance differentiates Circle from Tether, the largest stablecoin issuer, as Tether’s CEO Paolo Ardoino has accused competitors of attempting to undermine USDT through regulatory tactics.
Allaire’s position on U.S. registration of stablecoin issuers reflects a walled-garden approach to regulation. He believes that issuers of stablecoins pegged to the U.S. dollar should be required to register in the U.S. In the interview, Allaire expressed concerns about stablecoin issuers outside the U.S., stating that they should not be able to operate without regard for U.S. law and sell into the U.S. market. These comments come as Senator Bill Hagerty recently proposed a framework for stablecoin issuers and President Donald Trump aims to make the U.S. a hub for cryptocurrencies. Circle’s efforts may impact its main competitor, Tether, which recently relocated its headquarters to Bitcoin-friendly El Salvador.
Allaire emphasized that the call for U.S. registration of stablecoin issuers is driven by consumer protection and financial integrity. He believes that any company, whether offshore or based in Hong Kong, that wishes to offer its dollar stablecoin in the U.S. should be required to register in the U.S., just as Circle has to register in other jurisdictions. It is worth noting that Circle’s USDC stablecoin is the only legal stablecoin recognized by the Dubai Financial Service Authority (DIFC).
In response to the push for stablecoin regulation, Tether CEO Paolo Ardoino strongly opposes what he sees as competitors’ use of regulatory tactics to undermine USDT, the world’s largest stablecoin. Ardoino accuses rival stablecoin issuers of engaging in “lawfare” by utilizing legal and regulatory frameworks to stifle competition. He highlights Tether’s widespread adoption in emerging markets and its extensive distribution network, which includes digital remittance platforms, institutional payment backbones, physical kiosks, and underserved communities in Africa and South America. According to Ardoino, Tether holds over $115 billion in U.S. Treasuries, making it the 18th largest holder of these assets. Tether serves over 400 million people worldwide. However, Ardoino expresses concern that competitors are seeking to cripple Tether through regulatory means instead of encouraging competition through innovation. He warns that such tactics could ultimately harm communities that rely on stablecoins for financial stability.
The ongoing debate over stablecoin regulation involves competitors seeking maximum scrutiny of stablecoin issuers and others advocating for more balanced regulation to foster innovation and growth. The future of U.S. recognition in the stablecoin world depends on regulatory decisions, as stablecoins play an increasingly important role in global transactions and U.S. economic strategy.
