07.10.2022
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Circle highlights the principles for the new regulation of cryptocurrency

With the US politicians against all cryptocurrencies again on the war footing, the leaders of the sector are espousing their visions in the hope of an innovative future and progress in any normative framework.

L’emittente della stablecoin USDC, Circle, has published on July 18 its “Payment Stablecoin Policy Principles”, hoping that it will not fall into the void.

Dante Disparte, Chief strategy office and responsible for the global policies of Circle, has affirmed that the moment to act is now, in a moment of correction of the market but of continuous and rapid growth. He added that the regulation of cryptocurrencies must balance the risks of stablecoins with “the definition of clear rules of the road, so that the US dollar continues to be the main digital currency of the Internet and can advance the leadership and economic competitiveness of the States” Unity”.

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The society has declared that the market’s major flexion has justified the politicians who have launched the alarm of excessive risks in the sector. The main factors triggering this market correction of 70% are excessive leverage positions, excessive loans and the collapse of the Terra stablecoin ecosystem.

Disparte has delineated 19 principles that reflect Circle’s experience in managing global stablecoin regulations.

The use of money should be free, regardless of its form, he declared before adding that a stablecoin is a “digital instrument for the bearer” that gives the right to refund 1 dollar.

He declared that preserving privacy should be a problem of designing stablecoins, but it is doubtful that the banks agree on this point. According to Circle, “transparency, responsibility and harmonization of risk information” are essential requirements for trust in the market and protection of consumers, which the regulatory authorities will probably support.

The stable money should not compete with the currency issued by the banks, but it will be integrated by offering more transaction options and flexibility. They can also coexist with the digital currency of central banks (CBDC).

As per the traditional banks, Circle supports the application of anti-money laundering (AML) standards, anti-terrorist funding, sanctions and client knowledge (KYC).

In addition, the stablecoin should have a composition and guaranteed cash and dollar liquidity. Circle has also promoted the direct custody of such activities at the Federal Reserve.

Alla luce del Markets in Crypto-Assets Framework (MiCA) Europeo, “è necessaria la leadership degli Stati Unitedi per evitare transatlantico globali disallineamenti o globali, aharmonizando al tempo gli standard per le stablecoin”, he declared.

Finally, he declared that the stablecoin regulations should be treated as cash or cash equivalents in the United States to promote clarity and coherence, so that families and businesses can use them with confidence.

Questi sono alcuni dei principi delineati dalla società, e la maggior parte di essi dovrèbe essere linea con qualsiasi federale legislazione quando verrà finally introductos.

Prospective dell’ecosistema delle stablecoin

Circle is currently the second largest stablecoin on the market, with 54 billion USDC in circulation. Its market share is equal to about 36% of the 153 billion dollar total of stablecoin.

L’USDT di Tether remains dominant, ma solo di poco, con una quote in calo del 42.8% o 65.8 miliardi di USDT in circulation. Circle has slowly touched the market share of Tether during the last year and it is predicted that it will change soon.

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