In a recent interview, Jeremy Allaire, co-founder and CEO of Circle, emphasized the necessity for all issuers of dollar-pegged stablecoins to register within the United States. Allaire contends that allowing non-compliant entities to operate freely undermines regulatory integrity. He stated,
“It shouldn’t be a free pass… where you can just ignore the U.S. law and go do whatever the hell you want wherever and sell into the United States.”
Allaire’s Stance in Line with Congressional Demands
This stance aligns with recent legislative efforts aimed at establishing a clear regulatory framework for stablecoins. On February 4, Senator Bill Hagerty (R-TN) introduced the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 (GENIUS Act)—a bipartisan bill aimed at defining the regulatory landscape for stablecoin issuers. The legislation, co-sponsored by Senate Banking Chair Tim Scott (R-SC), Sen. Kirsten Gillibrand (D-NY), and Sen. Cynthia Lummis (R-WY), seeks to provide much-needed clarity on how payment stablecoins should be structured and supervised.
Under the proposed framework, stablecoin issuers could operate as a subsidiary of an insured bank, an uninsured depository institution, a trust bank, or a nonbank financial entity—with oversight at either the federal or state level. The bill also reinforces key requirements, including defining “payment stablecoins,” enforcing reserve backing, and applying bank-like regulatory standards to both banking and nonbanking issuers.
The GENIUS Act is the first major crypto-related legislation introduced in the 119th U.S. Congress, but it is unlikely to be the last. Just days after its introduction, House Financial Services Committee Chair French Hill and Rep. Bryan Steil released a separate draft of stablecoin legislation, while Rep. Maxine Waters put forward another proposal. During a recent press conference alongside White House Crypto and AI Czar David Sacks, Sen. Scott expressed his intent to push the GENIUS Act through within President Trump’s first 100 days in office.
Circle Exec Pushes for Expanding Stablecoin Market Oversight
Circle’s Chief Strategy Officer & Head of Global Policy, Dante Disparte, reinforced CEO Jeremy Allaire’s call for stablecoin regulation, emphasizing that all issuers of dollar-backed stablecoins—regardless of their size or location—should be subject to U.S. oversight.
“All companies that issue dollar stablecoins—whether they’re startups or based outside the U.S.—should have the opportunity to register in the United States and compete on a level playing field. No company that issues dollar stablecoins should get a free pass from safety and soundness rules and appropriate prudential supervision,” Disparte told CoinDesk.
The stablecoin sector has grown into a $232 billion market, playing a crucial role in cryptocurrency trading and cross-border money transfers. Traditional financial firms are also increasing their involvement in the space, with PayPal planning to expand its PYUSD stablecoin business.
Quick Facts:
- Circle’s CEO calls for all dollar-backed stablecoin issuers to register in the U.S. to maintain regulatory integrity.
- The GENIUS Act aims to establish a comprehensive framework for stablecoin issuance and operation in the U.S.
- Stablecoins have a global market cap exceeding $200 billion as of early 2025, highlighting their growing role in the financial ecosystem.
- Allaire emphasizes that non-compliant entities should not be allowed to operate freely, advocating for consistent standards across the industry.
