Issuers of stablecoins like Tether (USDT) and USD Coin (USDC) may soon exist required to piece of work under the aforementioned regulations as banks, but that seemingly doesn't frighten the CEO of the USDC-issuer Circle.

Commenting on the Biden administration'southward proposal to work on a bank-like regulation for stablecoin issuers, Circle CEO Jeremy Allaire took a supportive stance for the recommendation. He highlighted that the proposal's aim to regulate dollar stablecoin issuers in the United States financial system as banks at the federal level past the Federal Reserve represents meaning progress for the industry's growth.

Allaire noted the electric current steps would upgrade the current money manual-focused regulations "to a much more fundamental infrastructure at the core of what potentially the future of banking and capital markets look like."

"There's a real recognition that equally these payment stablecoins abound, they could grow at internet scale relatively quickly," Allaire commented. When the stablecoin market grows into the hundreds of billions in circulation and trillions in transactions, the risks to financial markets and financial stability go much more significant, he added.

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As Cointelegraph reported, the Biden administration's proposal aims to create a new "special-purpose charter" for stablecoin issuers, putting them in the same category equally banks. Allaire believes that the details on a bank charter for a crypto company might need to go worked out over fourth dimension with both the FDIC and other agencies that oversee banks.

Stablecoins take become a central talking point for regulators. In September, the U.Due south. Treasury reportedly held several meetings to examine the risks of stablecoins for users, markets and the financial system.