Finst

Circle chief: SEC has no jurisdiction over stablecoins

Circle CEO Jeremy Allaire says stablecoins are payment systems, not securities.

By Mike Hesp
• 2 min read
Circle chief: SEC has no jurisdiction over stablecoins

Circle CEO Jeremy Allaire claims that stablecoins are payment systems, not securities. The SEC is therefore not responsible.

The U.S. Securities and Exchange Commission (SEC) isn’t the right agency to regulate stablecoins, according to Circle founder and CEO Jeremy Allaire.

In a Bloomberg interview on February 24, he commented on the SEC and its recent actions to regulate the crypto industry.

"Payment stablecoins" tied to the dollar would fall under the banking regulator's jurisdiction, not the SEC.

"There's a reason governments worldwide, including in the U.S., explicitly say stablecoins are a payments-system activity and a banking-regulator activity," Allaire said.

Circle is the issuer of the world’s second-largest stablecoin (USDC). Despite the SEC's current crackdown on the crypto sector, Circle said it would expand its staff by 15% to 25%.

It also said it would continue working on the company’s IPO. "We plan to keep moving on our path to an IPO and will take the necessary steps to reach it as quickly as possible," Circle CFO Jeremy Fox-Green said.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.