Jeremy Allaire: After the approval of spot bitcoin exchange-traded funds, changes in the regulation of cryptocurrencies should follow

Circle founder and CEO Jeremy Allaire believes that there is a high likelihood of large-scale regulation of stablecoins in 2024. Leadership in this issue will be assigned to the United States.

According to Allaire, this will not be affected by the high-profile bankruptcies that occurred earlier in the crypto industry, the fall of FTX and the conflict between the American authorities and Binance.

Authorities in other countries began regulating stablecoins even before the United States, so if the United States wants to take a leading position in the financial sector, it must guarantee proper consumer protection, Allaire is sure.

The head of Circle said that following the approval of spot Bitcoin exchange-traded funds, changes in the regulation of cryptocurrencies should follow and 2024 is the right time.

Circle Director of Strategic Development Dante Disparte also hopes that at the beginning of 2024, the US authorities will formulate clear rules regarding payments and stable coins. This issue is already being discussed by politicians.

But lawmakers still fear that stablecoins could be used to finance terrorism or drug trafficking, Disparte said. One of the known draft laws on stablecoins is currently under consideration in the Senate.

It calls for stablecoin issuers to be subject to the same rules as conservative financial institutions. Additionally, a draft stablecoin transparency bill was presented to Congress in 2022.

Recently, Circle representatives have repeatedly spoken about the need to adopt legislation regarding stablecoins. The company spent more than half a million dollars lobbying him.

What do you think about this?