Banking turmoil pushes crypto to ‘no oversight,’ says Circle CEO
The ongoing crisis and uncertainty around the global banking system could push the cryptocurrency market into a more gray area in terms of regulation, Circle chief executive believes.
Jeremy Allaire, CEO of the USD Coin (USDC) issuer Circle, took to Twitter on March 23 to share his reflections regarding the market dynamics in the aftermath of the Silicon Valley Bank (SVB) collapse.
In the Twitter thread, Allaire highlighted the “deep market anxiety” about general exposure to the financial system of the United States and the risk of a large-scale U.S. banking system failure.
Circle CEO emphasized that the ongoing banking crisis has a lot more potential to hurt crypto firms regulated in the United States rather than those regulated in other jurisdictions, stating:
Allaire went on to say that the SVB contagion could potentially drive the crypto market to a less regulated area, urging U.S. policymakers to think about what happens next. Addressing the U.S. White House and the U.S. Congress, the CEO argued that there has been no situation in the past 10 years where the U.S. so urgently needed a “clear, coherent and pragmatic policy.”
“We are in serious risk of seeing an entire strategic technology arena slip away from US leadership,” Allaire warned, adding:
Allaire stated that Circle will continue operating within a regulatory perimeter and will keep working to add “more transit and settlement banking partners.” He also stressed that USDC “has not missed a beat” and has never failed to mit or redeem USDC for $1, including “during the past weeks stress test.”
As previously reported by Cointelegraph, Circle has experienced major issues due to its exposure to the collapsed SVB bank, with its USDC stablecoin briefly losing its 1:1 peg
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