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With stablecoin legislation on the horizon, Circle chief executive Jeremy Allaire calls for issuers of dollar-pegged tokens to register in the U.S.

Circle CEO Jeremy Allaire seems to back a walled garden approach to stablecoin regulation, saying issuers of dollar-pegged tokens should have to register in the U.S. In an interview with Bloomberg, Allaire raised concerns about non-U.S. based stablecoin issuers, saying there “shouldn’t be a free pass.”

“It shouldn’t be a free pass, right? Where you can just ignore the U.S. law and go do whatever the hell you want wherever and sell into the United States.”

Jeremy Allaire

Allaire’s comments come as Senator Bill Hagerty recently proposed a framework for stablecoin issuers while President Donald Trump has promised to make the U.S. a crypto hub. Circle’s efforts might potentially affect its main rival and the largest stablecoin issuer by market capitalization, Tether, which recently moved its headquarters to Bitcoin-friendly El Salvador.

“This is about consumer protection and financial integrity. Whether you’re an offshore company or based in Hong Kong, if you want to offer your dollar stablecoin in the U.S., you should need to register in the U.S. just like we have to go register everywhere else.”

Jeremy Allaire

Tether CEO Paolo Ardoino did not publicly address Allaire’s call but suggested in a Feb. 25 post on X that competitors were working to undermine his company.

“While our competitors business model should be to build a better product and even bigger distribution network, their real intent is ‘Kill Tether’. Every single business or political meeting that they have culminates with this intent.” Paolo Ardoino

The debate over stablecoin regulation extends beyond the U.S. In July 2024, analysts at blockchain research firm Kaiko suggested that Europe’s Markets in Crypto-Assets Regulation prompted a rush among issuers to comply, benefiting Circle at the expense of its rivals.

Ardoino criticized MiCA, arguing that its requirement for stablecoin issuers to hold at least 60% of reserves in E.U. bank accounts poses financial risks, as deposits exceeding €100,000 are not insured.