Circle CEO Allaire Challenges SEC’s Stablecoin Crackdown
- Circle CEO Jeremy Allaire has said Stablecoins should not be regulated by the SEC and are globally accepted as a payment system.
- The SEC has already cracked down on Paxos and its issuance of Binance’s stablecoin.
- The Securities Act of 1933 gives the SEC large scope for its jurisdiction, which goes beyond the commonly used Howey test.
The U.S. Securities and Exchange Commission (SEC) has stepped up efforts to regulate cryptocurrencies following TeraUSD’s demise and the collapse of FTX.
Jeremy Allaire, the CEO of payment app Circle—the same company that issues USDC—has spoken out about the SEC’s involvement, specifically referencing the regulator’s focus on Stablecoins.
Allaire asserts that the SEC is not the right regulatory body to police Stablecoins, stating his belief these fiat currency-pegged tokens are a…