Circle attempts to use regulation to crack down on competitors? Tether CEO: Their business model is to eliminate USDT

Jeremy Allaire, co-founder of stablecoin issuer Circle, recently advocated in an interview with Bloomberg that issuers of US dollar pegged cryptocurrencies that support digital asset market trading should be registered in the United States. A new regulatory struggle is quietly unfolding regarding stablecoins.

Circle calls on stablecoin issuers to register in the United States

Recently, the stable currency has become the focus of the US cryptocurrency industry regulation, because the relevant legislation may become one of the priority policies of the current Trump government. Republican Senator Bill Hagerty from Tennessee proposed a bill earlier this month to establish a regulatory framework for stablecoins. In addition, Donald Trump, the former President of the United States, also said that he would work to make the United States the global cryptocurrency center.

Regarding relevant legislation, Circle CEO Jeremy Allaire advocates that the regulation of stablecoins should be consistent with US laws and should not allow certain companies to bypass these regulatory norms. Allaire Regardless of whether the company is registered overseas or not, if it wants to provide stablecoins pegged to the US dollar in the United States, it should register in the US like other businesses to ensure consumer protection and financial integrity.

On the other hand, Dante Disparte, the strategic director of Circle, recently called on the government to accelerate the development of relevant laws to ensure that stablecoins are treated fairly regardless of whether they are issued within or outside the United States in an interview with The Information. He emphasized the need to establish a fair market environment to support the development of stablecoins and ensure that these financial products continue to receive support from banks and regulatory systems. Of course, the term 'fairness' here clearly means hoping that foreign countries will comply with the same regulatory standards as domestic countries like Circle.

Tether CEO: Competitors only want to eliminate us

In response to Circle's revealed wishful thinking, Tether (USDT) CEO Paolo Ardoino, who recently announced the relocation of its headquarters to El Salvador, stated on social media X:

Our competitors' business model should be to create better products and stronger distribution networks, but their real goal is to 'eliminate Tether'

In addition, Paolo Ardoino Furthermore, this viewpoint has become an open secret among many insiders and observers who have had contact with the US government.

The regulatory struggle of stablecoins

On the other hand, Framework founder Vance Spencer also posted that a new regulatory battle is taking place in Washington D.C.

"The upcoming amendment to the Stabilization Currency Act seems to contain a provision that prohibits international centralized stable currency issuers from entering the US treasury bond bond market - this is crazy!"

Vance Spencer It is believed that this is an attempt by domestic financial institutions in the United States to exclude international competitors through regulatory measures, but at the same time, it completely harms the national interests of the United States. Because limiting the demand for hundreds of billions of dollars of U.S. debt will not only help the United States maintain its global dollar hegemony or solve the treasury bond problem, but will have a negative impact.

Vance Spencer Emphasis should be placed on the fact that the currently largest stablecoins by market value are mainly issued by overseas institutions, and the main demand comes from overseas. This reality will not change due to US regulatory policies. If the United States continues to adopt a hostile attitude towards stablecoins, the ultimate result will only be to completely eliminate itself, just like how Europe treats artificial intelligence (AI).

If the future of stablecoins is still based on the US dollar, the only way is to allow more diverse stablecoin issuers to compete and prevent those who attempt to monopolize the market through regulation