The CEO of stablecoin issuer Circle has issued a stern warning about the urgent need for Congress to pass stablecoin regulation in order to safeguard the US dollar’s status as a global reserve currency.
In a video shared on Twitter, Jeremy Allaire, CEO of Circle, which issues USD Coin (USDC), directly addressed lawmakers, emphasizing that stablecoin regulation is crucial if the dollar is to remain the world’s dominant currency.
Allaire pointed out that with Congress preparing to vote on stablecoin legislation currently being refined by the House Financial Services Committee, now is the time for swift action. Failure to implement effective regulation could endanger the dollar’s global prominence.
As the debate rages between Democrats and Republicans over the Federal Reserve’s role in overseeing stablecoin issuers and other key issues, Allaire stressed that stablecoin regulation is vital to preserve the dollar’s dominance.
He warned that without regulation, global commerce could increasingly be conducted in digital euros or yuan instead of digital dollars.
Allaire highlighted threats to the dollar like China’s digital yuan and the decline in the dollar’s share of global currency reserves in recent years. He said the U.S. now faces a choice: ensure the dollar remains the foundational currency of the internet or cede that leadership to others.
The implications of this decision will profoundly shape the global financial system for decades, Allaire cautioned. With mounting competitive pressures from digital currencies, Allaire urged Congress to move swiftly to regulate stablecoins and protect the dollar’s standing.
In recent testimony before Congress, Allaire reiterated his calls for stablecoin regulation, noting the risks of inaction. He specifically flagged the threat posed by China’s digital yuan.
In his video message, Allaire’s stark warning reflects the high stakes of the ongoing debate in Congress over stablecoin regulation. As lawmakers hash out the details, Allaire is imploring them to move with urgency and support measures that will allow the dollar to maintain its competitive edge in the digital currency landscape.
Time will tell if Congress heeds these warnings and passes effective stablecoin regulation that safeguards the dollar’s status. But Allaire’s message makes it clear that inaction is not an option if the U.S. wants to preserve the dollar’s dominance for years to come.