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July 30, 2019

Circle CEO Says Crypto Is a New Asset Class, Warns US Is Falling Behind

By Daily Hodl Staff

Jeremy Allaire thinks the United States is falling behind other parts of the world in terms of being a leader in digital asset technology – and he plans to tell lawmakers just that. 

The Circle CEO will be one of the most prominent pro-crypto voices in today’s Senate Banking, Housing and Urban Affairs Committee hearing on digital currencies and blockchain technology. 

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Allaire says in his written testimony that America’s ambiguous crypto regulatory framework could lose the country valuable business. 

“The result of the uncertain and restrictive regulatory environment has led many digital asset projects and companies to domicile outside of the United States and to block US persons and businesses from accessing products and technologies.

In Circle’s case, we have begun the process of moving our international-facing products and services into a licensed Bermuda entity. Bermuda’s forward-looking Digital Asset Business Act provides a comprehensive regulatory framework for companies offering this new type of financial service. We believe that the approach the Bermuda government has taken can and should be emulated by other countries.”

The CEO also says cryptocurrencies should be treated as a new digital asset class. 

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“It is vital that we allow innovators and digital assets projects room to grow and develop here in the United States. Congress should adopt national policies that define and establish digital assets as a new asset class and develop appropriate rules and exemptions for digital assets. This will require legislation that likely changes our existing commodities, securities, and banking laws, among others.”

Tuesday’s session follows two congressional hearings on Facebook’s controversial Libra project held earlier this month, which also featured discussions on crypto.

The hearing will be webcast live and is scheduled to begin at 10:00 a.m. EST.

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