Allaire revealed in a June 12 blog post the prepared remarks he intends to deliver to Congress regarding the regulation of stablecoins.

The chief executive officer emphasized the significance of passing comprehensive legislation to establish a regulatory framework conducive to a thriving and secure digital assets market.

The CEO of Circle backs a bipartisan stablecoin measure

Allaire's remarks pertain to a bipartisan discussion draft titled "a bill to provide for the regulation of payment stablecoins, and for other purposes." He endorsed the proposed legislation. If passed, it would facilitate access to the US dollar while prioritizing safety and fostering robust competition, he said.

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While supporting the proposed legislation, Allaire emphasized the need for certain modifications. He urged federal enforcement of standards and advocated for stablecoin issuers to have simpler access to Federal Reserve account services. He proposed that stablecoin intermediaries be required to store stablecoins with qualified chartered custodians.

In addition, Allaire suggested that criminal penalties, as opposed to civil penalties, be imposed on entities that issue counterfeit stablecoins and digital dollars.

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Allaire urges action to counter the ascent of the digital yuan.

Noting the dollar's declining position in the world's foreign reserves, Allaire emphasized the significance of taking action to preserve the dollar's dominance. He drew attention to the emergence of alternative digital payment technologies, such as China's digital yuan, and implored U.S. legislators to lead stablecoin regulation rather than deferring to foreign jurisdictions.
The CEO of Circle highlighted the company's progress in obtaining licenses and oversight in the United States, Europe, and Asia for its USDC stablecoin.

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On June 13, Congress will hear testimony from Allaire and other prominent figures in the cryptocurrency industry, such as Emin Gün Sirer, founder and CEO of Ava Labs, and Aaron Kaplan, founder and Co-CEO of Prometheum.
As the cryptocurrency landscape evolves, market participants await the response of Congress to the rising demand for regulatory clarity and guidance in the stablecoin market.
The outcome of this congressional hearing may have an impact on the future of stablecoin regulation in the United States and global approaches to digital currency supervision.