One of the most well-known stablecoins offered worldwide is USD Coin (USDC-USD). It serves as the foundation for countless exchanges and has mostly avoided the sticky circumstances that Tether (USDT-USD), its major rival, has encountered. This month, the token is increasing its reserves, which is positive news in and of itself. However, there is more good news for the stablecoin supporters: Circle, the coin’s parent firm, plans to go public by the end of the year.
Circle and Coinbase introduced USDC in the latter part of 2018. The underlying trading activity on Coinbase is one of the stablecoin’s main applications. The introduction represented the first time one could purchase and sell cryptocurrency using a currency that is still tethered to the U.S. dollar because Coinbase hadn’t supported stablecoins up until that moment (USD). But it has developed into much more than that since then. Currently, users use tens of thousands of dapps, exchanges, and DeFi platforms to transact billions of dollars in USDC.
USDC’s circle’s 19 principles
As part of the company’s efforts to influence US stablecoin legislation, Dante Disparte, the head of Circle’s government work, presented a list of 19 principles for stablecoin regulation on July 18.
For those who have been following the discussion on stablecoin issuance, the guiding principles—privacy, continued issuance by non-banks, and coexistence with a hypothetical central bank digital currency—are fairly well known. After Tether, Circle’s USDC, which has a $45 billion total supply, is the second-largest stablecoin.
Disparte further added,
“The preservation of bank and non-bank dollar digital currency issuance promotes competition, a level playing field, and rules-based upgrades in the financial system. Bank-like risks should be addressed with scale-appropriate bank grade levels, including asset liability management, operational and enterprise risk management considerations.”
In December, Disparte gave testimony to the Senate about stablecoins. At the time, he was already promoting a similar multifaceted strategy for stablecoin regulation, which has been heavily requested by the sector. The Treasury, on the other hand, has advocated for restricting issuance to “insured depository institutions,” which are typically banks. Jeremy Allaire, the CEO of Circle, has also frequently appeared in congressional hearings on cryptocurrencies.
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