jeremy allaire - Pwim.Net

Biden's Administration "Will Ultimately Be Supportive" of Bitcoin, says Circle CEO

Jeremy Allaire, the Co-Founder, and Chief Executive Officer of Circle, the blockchain firm behind the USDC Stablecoin has given his opinion on his expectations of the Biden administration in relation to providing the right regulations to support Bitcoin. Speaking in an interview on CNBC Squawk Box, Jeremy said that he believes the Biden era will likely be more friendly to digital currencies and their inherent opportunities.

When asked by the host of the program whether he thinks the incoming administration will be positively predisposed to cryptocurrencies or if he thinks the entire space will be tightly regulated, Jeremy answered by saying:

“They will ultimately be supportive because this is an infrastructure change as big as the initial commercial Internet.”

He added that the Biden administration will focus on the digital currency space as they are keen on developing the country’s infrastructure. He also submitted that the focus of the coming government will be targeted at making the digital currency space more competitive.

Biden’s Crypto Embrace Will be Evident In His Appointments

Since the president-elect, Joe Biden was declared the winner of the 2020 US presidential election, the crypto sphere had been speculating on what the future holds for Bitcoin and the entire horde of digital currencies.

The president-elect has made the very first step in revealing his plans for the crypto space with the report that he is considering Gary Gensler, the former Commodity Futures Trading Commission chairman, to become Deputy Treasury Secretary.

The current Chairman of the Securities and Exchange Commission Jay Clayton has announced he will be ending his tenure with the commission by the end of the year, and thus there will be a need to fill in the gap. The chosen candidate for the SEC job as well as other key regulatory agencies will go a long way in determining what the future holds for the cryptocurrency ecosystem.

Circle CEO Tells US Treasury Department to Provide a "Meaningful Safe Harbor" for the Crypto Industry

Jeremy Allaire, the Chief Executive Officer (CEO) of Circle, a US-based peer-to-peer payments company, has sent a letter to the United States Treasury Department calling for an improved regulation that can offer a “meaningful safe harbor” for players within the cryptocurrency ecosystem.

Allaire’s letter was inspired by the recent news that the outgoing Donald Trump’s administration through the Treasury Department is planning to enact a regulatory ban over self-hosted crypto wallets.

In his letter, Jeremy recanted his experience at the beginning of the internet boom decades ago noting that he correctly predicted that the then-emerging technology will take over open communications networks despite the imminent fears of risks that prevailed at the time. Jeremy noted that the events of 1996 are seemingly playing out with open-source blockchain networks of today, a move the government is planning to clamp down on.

He also noted that the innovations of public blockchains are currently been used around the world to service clients across various industries and that any attempt to bring in strict regulations will give China an upper hand in the race for supremacy in the Blockchain and cryptocurrency ecosystems.

Allaire noted that the industry is working assiduously to prevent the technology from been harnessed by bad actors, which is one of the basic and biggest fears of the Treasury Department. Per the Circle CEO’s words:

“We have focused much of our effort on the safe and secure delivery of our technology to our growing list of clients across multiple industries. The promise of public blockchains is based in part on the security of our technology. Our industry is intensely focused on addressing concerns about the potential for financial crimes that exist with blockchain transactions and I am equally sensitive to the Treasury’s focus on the same.”

The CEO then suggested that the Treasury Department should give the industry players about a year or two to implement technologies that can help in ensuring compliance with Know Your Customer (KYC) policies and other transaction-reporting requirements, a move that will not hinder the innovations currently available in the blockchain ecosystem.

Jeremy Allaire’s proposal echoes some US lawmakers who have also expressed concerns over the proposed legislation as reported by Blockchain.news.

Image source: Blockchain.news

Circle CEO: Treasury’s Crypto Wallet Rule is a Potential Next Level of Financial Surveillance Never Seen Before

The US Treasury Department recently proposed a new regulation, which requires banks and money service businesses such as crypto trading platforms to verify the identities of self-hosted or unhosted wallet holders for any digital asset transaction that exceed $3,000.

In an effort to address anonymous transfers of digital assets by “bad actors,” the US Treasury Department has launched a proposal to require some crypto users to offer information about their identities. The new plan targets private accounts that allow the holder of a unique digital key to store crypto assets and transact with others directly without going through a financial institution.

Any cryptocurrency transaction that exceeds $10,000 would need to be reported to the Financial Crime Enforcement Network (FinCEN) within 15 days, according to the proposed regulation.

Jeremy Allaire expressed concerns ahead of the proposal

Jeremy Allaire, the CEO of payments company Circle has previously sent a letter to the Treasury Department, calling for an improved regulation that could offer a “meaningful safe harbor” for players within the cryptocurrency ecosystem. Allaire was inspired by word getting out of the enactment of a regulatory ban over self-hosted crypto wallets prior to the proposal.

Allaire has had the opinion that the cryptocurrency industry has been working very hard to prevent the technology from being harnessed by bad actors, which is one of the biggest fears of the Treasury Department. Allaire further advocated that the Treasury Department should give industry players about a year or two to implement technologies that can ensure proper KYC policies and other transaction reporting requirements, to not hinder innovations in the blockchain industry.

Jeremy Allaire: Rule on unhosted wallets is a personal mission for Secretary Mnuchin

According to Allaire, the proposed regulation by the Treasury Department on unhosted wallets was a personal mission for Secretary Mnuchin. The Circle CEO explained that Mnuchin’s personal view is far more aggressive than the proposed rule that was put forward. Allaire further explained:

“His original plan was to just drop this as a final rule with zero notice for public comment, as a “midnight rulemaking” on his way out of office. This actually didn’t have broad support, in fact very few people were even aware of this plan. As people got word, an intense amount of work went on behind the scenes to try to at least get this for a standard notice and public review.”

Mnuchin’s excuse for not wanting a public review was due to the fact that he believed this would allow the “bad guys” to move their funds off of regulated exchanges, however, as Allaire pointed out, the reason could be the fact that Jan. 20 is the end of his term.

15 days given to stakeholders is not enough

The Treasury has given stakeholders 15 days to respond with comments for the proposed rules. Allaire commented on the short period:

“The biggest issue here is first and foremost that 15 days over the holidays is totally inadequate and is just frankly a cynical ploy to jam this through no matter what feedback comes back. This violates the APA, so if it’s jammed through, expect a lawsuit for an injunction.”

New rule proposes a new level of financial surveillance

According to Allaire, the proposed rule introduces the “potential for a level of financial surveillance that goes beyond anything that exists with the existing banking system.” Allaire argued that while a large cash transaction can involve a CTR filing, however, regulators cannot track where the cash goes.

The Circle CEO advocated again for more time to work as an industry with the regulators, to prevent the hindering of creating new breakthrough innovations. He concluded:

“Key thing now is to apply as much pressure as possible, and litigate if necessary, to ensure the kind of public review, comment and iteration that this critical new economic infrastructure and innovation deserves.”

Circle Crypto Firm to Go Public in SPAC Deal Valuing At $4.5 Billion

Circle, a payment company and stablecoin issuer, has announced plans to go public later this year via a merger with Concord Acquisition Corp, a publicly traded special purpose acquisition corporation (SPAC).

The crypto financial services company expects to close the deal in Q4 and value the firm at $4.5 billion.

Circle is best known for co-creating USD Coin (USDC), the US-backed stablecoin. Circle CEO Jeremy Allaire said:

“We just see an incredible opportunity to grow rapidly and grow around the world, and we think that this set of transactions and becoming a public company sets us up to be a trusted platform in this digital currency industry,”

The firm plans to merge with Concord Acquisition Corporation, which former Barclays boss Bob Diamond backs, and the combined entity will be acquired by a new Irish holding firm that will trade on the New York Stock Exchange.

SPACs (special purpose acquisition companies) mean shell companies that raise capital through initial public offerings (IPO) to take private companies public via mergers later.

Circle, a Boston-based startup, said that the deal is expected to fetch $691 million in profits for the combined entity.

Institutional investors such as Daniel Loebb’s Third Point, Fidelity Management & Research Co, Marshall Wace, and accounts advised by ARK Investment Management LLC have come into agreement to offer $415 million in private investment in public equity (PIPE) financing. Last month, Circle raised $440 million in one of the largest funding rounds in cryptocurrency history. These show that Circle will have sufficient funds at its disposal if the merger deal goes through.

Circle’s effort to go public is set to put USDC’s Centre Consortium members on the public markets. USDC stablecoin, which Coinbase jointly administers, has increased its popularity in the stablecoin industry with a circulating supply of almost $26 billion.

Regulators’ Concerns Over Stablecoins

The announcement by Circle comes at a time amid rising concerns by regulators who worry that such digital money pegged to fiat currencies could be used to dupe consumers or enable money laundering.

In April, a federal court in Massachusetts allowed the Internal Revenue Service to seek information from Circle about US taxpayers who carried out transactions of at least $20,000 in crypto assets from 2016 to 2020. However, Circle has not been accused of wrongdoing.

In January, officials in the Biden administration warned stablecoin issuers that several consumers are unaware that the dollar-backed tokens are not federally insured and could lead to losses in their investments.

Regulators also are concerned that stablecoins could be used to sidestep the formal banking system and enable criminals to execute money laundering activities.

In May, Fed Governor Lael Brainard raised concerns over stablecoins by saying such coins introduce the risk that the private issuers default, which could harm consumers and destabilise the financial system.

USDC Enjoys Robust Reserve & Redeemed on 1:1 basis with USD, Says Circle CEO

Jeremy Allaire, the founder and Chief Executive Officer of USDC stablecoin issuer Circle took to Twitter recently to share updates about the firm and how it is in a better position financially despite the ongoing crypto market meltdown.

Allaire’s tweets were borne out of the need to clarify assumptions that the stablecoin is experiencing an economic turmoil, one that models what is currently being seen in the broader digital currency ecosystem. In response, Allaire said the USDC stablecoin has a very robust reserve and can easily be redeemed on a 1:1 basis with the United States Dollar.

The CEO noted that Circle has always preached transparency and accountability and that it not only has a verifiable reserve base, but he also released details about the company’s last audit which proved its assets held in reserves. The company said it has filed the audit reports for the years 2021 and 2020 with the United States Securities and Exchange Commission (SEC) as it looks to build global trust further ahead of its listing on the New York Stock Exchange.

“It’s understandable why some users would be paranoid given the history of hucksters in crypto. We have always tried to hold ourselves to the highest standards afford to us. That’s enabled us to work with regulators, top-tier assurance firms, and leading FIs,” Allaire said in the Twitter thread, adding that “Circle is in the strongest position it has ever been in financially, and we will continue to increase our transparency. FWIW, we are also encouraged by emerging regulatory frameworks for stablecoin issuers, which should help further increase confidence in issuers like Circle.”

The collapse of UST stablecoin broke investors’ trust in the crypto ecosystem even though the model upon which UST was built and USDC completely differs. While Allaire’s reassurances can act as a mild palliative, continuous operational excellence will be required to maintain trust in USDC continually.

At the time of writing, the USDC stablecoin is maintaining its pegged price of $1 atop a $55,822,273,913.87 market capitalization per data from CoinMarketCap.

Heath Tarbert Joins Circle as Chief Legal Officer and Head of Corporate Affairs

In an exciting development for the global fintech industry, Circle Internet Financial has appointed Heath Tarbert as its new chief legal officer and head of corporate affairs, effective from July 1, 2023. Tarbert’s appointment is a significant move for Circle, which has been actively pursuing a strategy of global growth.

Tarbert steps into the shoes of Flavia Naves, Circle’s outgoing general counsel, who had announced her plans to leave the company earlier this year. Naves is known for successfully overseeing the company’s expansion and fundraising efforts, as well as establishing a world-class legal organization.

Before accepting the role at Circle, Tarbert held a significant position as the chief legal officer at Citadel Securities. His impressive career spans leadership roles across all three branches of the federal government and several key regulatory bodies. His experience includes serving as the 14th chairman and chief executive of the Commodity Futures Trading Commission (CFTC), vice chairman of the International Organization of Securities Commissions, and assistant secretary of the U.S. Treasury for international markets.

The decision to bring Tarbert onboard underscores Circle’s commitment to integrating traditional finance with Web3, the decentralized web powered by blockchain technology. Circle’s co-founder and CEO, Jeremy Allaire, lauded Tarbert’s appointment, emphasizing that his vast legal expertise and global regulatory experience would be invaluable as the company seeks to enhance the utility value of its stablecoin, USDC, on a global scale.

On his part, Tarbert expressed his excitement to join Circle and contribute to its mission of evolving the global financial system. He stressed the need for sound regulatory rules that provide clarity and protection for individuals and businesses dealing with digital assets.

Circle Internet Financial is a global fintech firm offering businesses the ability to leverage digital currencies and public blockchains for various financial applications. It is well-known as the issuer of USDC and Euro Coin, trusted and interoperable money protocols used across the internet.

Stablecoins Could Bolster U.S. Dollar and Economic Competitiveness: Circle CEO

In a compelling testimony delivered to the House Financial Services Committee, Jeremy Allaire, CEO and Co-Founder of Circle, underlined the significant role stablecoins, such as the U.S. Dollar Coin (USDC), could play in strengthening the global position of the U.S. dollar. Allaire focused on the urgent need for the United States to lead the development of regulatory frameworks that promote growth and safety in the digital assets market.

A seasoned pioneer in the technology and financial sectors, Allaire highlighted how USDC, a leading digital currency tied to the U.S. dollar, is instrumental in advocating for a technologically superior, safe, and widely accessible U.S. dollar. He pointed out that the steps taken by the U.S. government in the near future would have profound implications on the competitiveness of the dollar for the coming decades.

The Circle CEO emphasized the rising demand for secure, internet-based dollars, asserting that with a robust regulatory framework, this market could potentially serve billions of users and handle trillions of dollars in payment activity. He also drew attention to the rapid progress of alternate payment systems and technological advancements such as 6G networks, quantum computing, and artificial intelligence, which could impact the supremacy of the U.S. dollar.

Allaire’s statement to the Committee also shed light on the importance of the stablecoin bill, a key piece of legislation he deems critical to the establishment of a vibrant and secure digital asset ecosystem. He advocated for robust supervision of stablecoin issuers, stringent requirements for asset backing of digital dollars, and measures to prevent the circulation of counterfeit digital dollars.

The Circle CEO addressed four unresolved issues, which, in his view, the Committee needs to tackle. These include clarifying the roles of state and federal banking regulators, addressing reserve requirements, determining how financial institutions should manage payment stablecoins, and establishing stringent measures to prevent the proliferation of illegitimate digital dollars.

Allaire ended his testimony with an urgent appeal to lawmakers, urging them to ensure the U.S. dollar remains competitive in an era of rapidly evolving technological innovation. Highlighting the critical crossroads facing the U.S. dollar, Allaire called for regulatory decisions that will foster a secure and thriving digital currency landscape, thereby maintaining America’s economic competitiveness and international influence.

Circle CEO Expects Yuan-Backed Stablecoins Despite China's Crypto Ban

According to SCMP, despite the stringent ban on cryptocurrencies in mainland China, Jeremy Allaire, the co-founder and CEO of Circle, a leading operator of the USDC stablecoin, foresees a significant role for yuan-backed stablecoins in the global crypto market.

In a recent statement at the Converge22 conference in San Francisco, Allaire acknowledged China’s reluctance to open up to cryptocurrencies. Despite this, he believes that stablecoins could be instrumental in achieving Beijing’s goal of yuan internationalisation.

Circle has expressed optimism about Hong Kong’s efforts to regulate stablecoins, considering Asia as its largest non-US market. This move could potentially pave the way for a more regulated and secure environment for stablecoin transactions, which could, in turn, boost the adoption of yuan-backed stablecoins.

While the ban in mainland China poses challenges, it also opens up opportunities for the growth of stablecoins, particularly those backed by the yuan. As China continues to assert its digital currency ambitions, the potential for yuan-backed stablecoins to contribute to the internationalisation of the yuan becomes increasingly apparent.

Allaire’s insights highlight the evolving landscape of the crypto market in Asia and the potential strategic role of yuan-backed stablecoins. As the crypto industry continues to evolve, the interplay between regulatory frameworks, market dynamics, and technological innovation will be crucial in shaping the future of digital currencies.