Circle CEO Jeremy Allaire recently emphasized that all stablecoin issuers should register in the United States during an interview with Bloomberg. This statement appears to indirectly address competitors like Tether, highlighting concerns over regulatory compliance. Meanwhile, USDC's market capitalization has surged to a new peak, reigniting discussions about Circle's potential IPO plans.
Stablecoin Issuers Should Register in the US, Says Circle CEO
Jeremy Allaire, the CEO of Circle, argued that issuers of dollar-backed cryptocurrencies must comply with US registration requirements.
"This shouldn't be a free pass, right? You can't ignore US laws, operate from anywhere, and freely sell products in the US," Allaire stated.
He stressed the importance of consumer protection and financial integrity:
- Offshore or Hong Kong-based firms offering dollar stablecoins in the US must register locally.
- Compliance ensures transparency and aligns with global financial regulations.
Recent US legislative proposals aim to regulate the $230 billion stablecoin market, with potential impacts on major players like Tether (USDT) and Circle (USDC). Allaire confirmed that stablecoin regulation remains a top priority for policymakers.
USDC Market Cap Reaches New Milestone
USDC's market capitalization rebounded strongly after a downturn in 2023 due to the Silicon Valley Bank collapse. Key highlights:
| Stablecoin | Market Cap (Feb 2025) | Recovery Timeline |
|------------|----------------------|------------------|
| USDC | $562 billion | ~2 years |
| USDT | $1,421 billion | N/A (steady growth) |
While USDC has regained lost ground, Tether’s USDT maintains a dominant position, exceeding USDC’s market cap by over 2.5x.
Circle’s IPO Ambitions vs. Tether’s Strategy
Circle has renewed efforts to pursue a US IPO after a failed SPAC merger in 2022. The company aims to:
- Become the first compliant, publicly traded stablecoin issuer in the US.
- Strengthen its position amid growing regulatory scrutiny worldwide.
👉 Explore how stablecoins are reshaping global finance
In contrast, Tether has avoided direct compliance with European MiCA regulations, discontinuing its EURt stablecoin and focusing on emerging markets. Analysts, including JPMorgan, suggest upcoming US stablecoin laws could pose significant challenges for Tether’s reserve-backed model.
FAQ
Q: Why does Circle insist on US registration for stablecoin issuers?
A: Allaire emphasizes consumer protection and financial transparency, arguing that operating outside US regulations undermines market trust.
Q: How does USDC’s recovery compare to USDT?
A: USDC took ~2 years to rebound post-SVB, while USDT grew steadily without major disruptions.
Q: What are the risks for Tether under new US laws?
A: Potential reserve audits and stricter compliance may pressure Tether’s operational model.
Risk Disclosure: Cryptocurrency investments are highly volatile and may result in total loss of capital. Assess risks carefully.