'Very good chance' that U.S. passes stablecoin laws this year, Circle CEO says

cnbc.com:

The CEO of Circle, the company behind popular stablecoin USD Coin, sees a strong chance that laws for stablecoin issuers like itself will come through in 2024.

Stablecoins, which allow traders to move in and out of crypto, are a $135.3 billion market — but they are for the most part unregulated. The U.S. is yet to pass federal crypto regulation, even as jurisdictions around the world are approving new crypto-focused laws.

But Jeremy Allaire, Circle's boss and co-founder, hopes that things will change this year, stating that there is a «very good chance» U.S. lawmakers approve a stablecoin bill.

Speaking with CNBC at the World Economic Forum in Davos, Switzerland, Allaire said regulatory developments around the crypto industry were picking up around the world, and that the U.S. was more than likely to approve laws for stablecoins than before.

«I think what you're seeing is a desire from the administration, a desire from the Treasury, from the [Federal Reserve], by both chambers of Congress, and certainly on a bipartisan basis,» Allaire told CNBC Monday.

«Digital dollars are happening around the world, other governments are regulating dollar-digital currencies before the United States. And so I think there is a very strong desire to act and assert U.S. leadership and get the right consumer protections involved,» Allaire added.  

Allaire was asked about the Clarity for Payment Stablecoins Act, which seeks to bring stablecoins within the same regulatory frameworks that govern traditional financial services companies.

The act was passed by the House Financial Services Committee in 2023, moving it to the floor of the House of Representatives for consideration. It has yet to be approved lawmakers in the House.

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