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Sector Perspectives
- Circle’s emphasis on rules corresponds well with stablecoin law.
- Senate idea could alter the industry.
- Tether criticizes its rival.
A prior version of this piece appeared in The Guidance newsletter on March 3. Sign up here.
Circle has been the “tortoise” following the “hare,” which is Tether, in the stablecoin market dominance battle for a long time.
Circle’s careful strategy and focus on compliance now position it well to prosper as the US Senate examines potentially substantial stablecoin regulations, while its more irresponsible rival appears to be enraged.
According to DL News, Circle’s compliance with regulations in both Europe and the US will enable the stablecoin issuer to adjust to any new and significant rules with relative ease.
Need for Certainty
The “GENIUS Act” would subject major issuers to federal regulation in order to provide much-needed clarity to the stablecoin market.
The plan would also mandate independent audits of their reserves to guarantee that they have enough cash or cash equivalents to support their tokens.
Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy, stated to DL News: “All businesses issuing dollar-denominated stablecoins, whether they are startups or based outside the US, should have the chance to register in the US and compete on a level playing field.”
Stablecoins are gaining traction.
According to a DL News story from the previous week, Chris Colson, a payments researcher at the Federal Reserve Bank of Atlanta, thinks stablecoins may be used as a novel and creative tool in the payment system.
However, this process will be gradual.
Circle is unconcerned about this.
The well-known USDT stablecoin’s parent company, Tether, is preparing to relocate to El Salvador! What is the reason? To circumvent the EU’s new cryptocurrency regulations, referred to as MiCA. Apparently, Tether favors El Salvador’s bright environment over Europe’s regulatory environment. Toncoin (TON) Value Forecast for March 26th
