New York, Thursday, September 12, 2024 – Circle Vice President Yam Ki Chan has cautioned that the United States could fall behind in stablecoin regulation due to ongoing political stalemate.
Speaking at Korea Blockchain Week on September 4, Chan highlighted that while global jurisdictions, such as the European Union and Hong Kong, have established comprehensive stablecoin regulations, the U.S. still lacks a unified national framework.
Chan noted that U.S. stablecoin issuers face a fragmented regulatory environment, with state-level money transmission laws creating a complex and costly compliance landscape. This fragmentation hinders innovation and complicates scaling for stablecoin issuers.
In contrast, Circle, the issuer of USDC and EURC stablecoins, has recently achieved compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.
Circle received an Electronic Money Institution (EMI) license from France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR), positioning itself as the first global stablecoin issuer to meet these new EU regulations.
Chan also emphasized the need for the U.S. to develop a cohesive regulatory structure for stablecoins. He referred to the bipartisan “Clarity for Payment Stablecoins Act of 2023,” which passed the U.S. House Financial Services Committee in July 2023.
This bill aims to address consumer protection, financial stability, and regulatory roles. However, it still requires further legislative action.
