Crypto Market News: Following the recent liquidity issues out of the Silicon Valley Bank collapse, Circle, the company behind stablecoin USDC, is even more optimistic about the company’s prospects in near future. Amid the U.S. regional banking crisis in March 2023, Circle faced massive redemptions over fear and uncertainty around the company’s reserves in the Silicon Valley Bank. However, the company was quick to initiate transfer of its SVB funds to Bank of New York Mellon. In this context, Jeremy Allaire, the company’s chief executive officer, feels Circle will have a competitive advantage as and when clear regulatory framework comes into force in the United States.
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Meanwhile, US lawmakers are pushing for clear stance on which cryptocurrencies to categorize as securities versus commodities through a draft proposal. Overall, the crypto market ecosystem in the United States looks to be a negative environment until there are clear laws.
USDC To Have Competitive Advantage?
As has been seen in the back to back lawsuits against Binance and Coinbase, it is argued that US regulators like the Securities and Exchanges Commission (SEC) is biased against non-US based crypto businesses. Hence, it has long been speculated that USDC would be favored by the U.S. government over the top stablecoin Tether (USDT). Also, Allaire maintained that Circle’s compliance of financial regulations will eventually give USDC an advantage over its rivals. Speaking about the stablecoin bill recently proposed in the U.S. House of Representatives, the Circle CEO said,
“With a bill like this we’ll end up doing more business with banks than we currently do.”
Allaire said the stablecoin would actually compete with US banks as the banks will not be licensed to operate in the digital assets industry.
Also Read: US SEC Floats New Rules for Securities Based Swaps, Here’s What it Means for Crypto
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