Jeremy Allaire has recently gone on to make a bold claim against the US Securities and Exchange Commission.
It could be a statement that Allaire, the CEO, and founder of Circle may have made out of anger against the regulator.
Although the US securities regulator has its own reason to go after the major crypto firms, many crypto observers say its aggression cannot be justified.
Claim by Jeremy Allaire
The founder of Circle, which is responsible for the minting and issuance of the USD Coin (USDC) has made a claim against the US SEC.
As per him, the US SEC is not the authority or regulator that should be trying to regulate the stablecoins. It was on February 24 when Allaire made the statement about his thoughts on the US regulator.
US SEC’s Behavior towards Crypto Industry
With the beginning of 2021, the cryptocurrency industry has grown in size tremendously. However, the regulatory authorities have continued increasing their scrutiny against crypto projects.
Compared to the crypto regulators from around the world, it is the US SEC that has demonstrated the highest level of aggression. There is no other regulator that comes close to the level of aggression as the US SEC.
With the constant network crashes and hacks in the year 2022, the US SEC has become even more aggressive. It is showing no leniency and flexibility towards cryptocurrency projects.
Strong Backlash Following Ban of Paxos
In the past 12 months, the cryptocurrency industry was used by the US regulator going against the common crypto projects.
However, the US SEC has started going against the stablecoin projects lately and that is what has the entire crypto industry reacting.
Just recently, the securities regulator went against Paxos. It is the platform responsible for the creation and distribution of the Binance USD (BUSD) tokens for the Binance exchange.
The US SEC reportedly barred the company from issuing any more BUSD tokens and their decision has faced a huge backlash since then.
Allaire is Not Happy with SEC
With Allaire’s recent take against the regulator, it has become clear that he has an issue with the securities regulator going against the stablecoins.
According to Allaire, it is not the securities regulator that should be dealing with the stablecoins. Instead, it should be the banking regulator that must be dealing with the stablecoins.
Just as the US regulator went after the issuer of the Binance USD stablecoin, the Circle community wanted to know if USD Coin (USDC) was in trouble or not.
However, Allaire confirmed that they have not been approached or targeted by the regulator at all. They are concerned about the way the US regulator has been going after the stablecoin projects.
Most of the stablecoins are pegged to the US dollar and it is alarming to see that the regulators are going after them.
By doing this, the regulators may be trying to destabilize the cryptocurrency industry.
Allaire’s Take on the Situation
In his statement, Allaire did not put the entire blame on the securities regulator. It did talk about the crashes that the stablecoin projects suffered in the year 2022.
The crashes such as the likes of UST by the Terra Network have spread fear across the cryptocurrency industry. Its crash cost billions of dollars to investors.
Therefore, the securities regulators going after the stablecoin projects is not fully based on negative aggression. Instead, they are trying their best to bring the stablecoin projects under their control.
They want to regulate them as much as possible and if that requires bringing down stablecoin projects posing risks and uncertainties, they will do it without hesitation.
However, if the regulators have to do it, they must do it in the right manner, and have the respective regulator handle the situation.
At the moment, the token issued by Circle, USDC, ranks as the second-largest stablecoin market with a valuation worth over $40 billion.