Circle CEO says ‘aggressive regulatory actions’ on crypto caused ‘deep market anxiety’
Circle CEO Jeremy Allaire has warned of the risks facing the crypto market due to exposure to the US dollar and regulatory risk in the US financial system.
In a Twitter March 23 threadAllaire said there “appears to be a large-scale de-risking of the USD exposed to US banks and US regulatory risk.”
The CEO stated that there is general market anxiety surrounding the large-scale failure of the US banking system and the aggressive regulatory actions on crypto.
He noted the irony of companies with the highest level of compliance with US regulations and are most integrated with the troubled banking system. This group is currently considered unsafe due to concerns about assets being stranded.
Allaire added that a macro risk also drove rotation from the USD to flagship digital assets – Bitcoin and Ethereum
Calls for regulation
The Circle CEO urged American politicians to be careful about their next steps.
He noted that their actions have begun to force market participants out of the United States into poorly regulated jurisdictions with higher risks and lax controls.
As such, Allaire said the current situation calls for a “clear, coherent and pragmatic policy” if the US wants to lose its position as a leader in blockchain technology.
USDC remains strong
Meanwhile, Allaire noted that Circle will continue to operate within the regulatory framework and adhere to the highest standards and transparency.
He added:
“USDC has not missed a beat, we have never failed to create or redeem USDC at $1, including during the last weeks stress test. As of last week, in the last year, we have redeemed $192.4B USDC at $1, and issued $176.9B for $1.”
The CEO also stated that Circle is adding new transit and settlement bank partners to ensure they can process issuance and redemptions of digital dollars 24/7 and throughout the year.
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