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The debate over stablecoin regulation in the United States is intensifying, with Circle CEO Jeremy Allaire calling for mandatory registration of all dollar-backed stablecoin issuers operating there.
In a recent interview with Bloomberg, Allaire argued that non-U.S. stablecoin providers should not be allowed to circumvent American regulations while still serving U.S. customers.
Allaire’s stance contrasts Circle with Tether, the largest stablecoin issuer. Tether’s CEO, Paolo Ardoino, has accused competitors of trying to undermine USDT through regulatory maneuvers.
His comments come amid growing legislative efforts, including Senator Bill Hagerty’s introduction of a stablecoin framework and President Donald Trump’s push to establish the U.S. as a global crypto leader.
In the interview, Allaire raised concerns about stablecoin issuers outside the U.S., saying there “shouldn’t be a free pass.” “It shouldn’t be a free pass, right? Where you can just ignore the U.S. law and go do whatever the hell you want wherever and sell into the United States.”
Circle CEO Jeremy Allaire seems to back a walled-garden approach to stablecoin regulation, saying issuers of dollar-pegged tokens should have to register in the U.S.
Circle’s efforts might potentially affect its main rival and the largest stablecoin issuer by market capitalization, Tether, which recently moved its headquarters to Bitcoin-friendly El Salvador. “This is about consumer protection and financial integrity. Whether you’re an offshore company or based in Hong Kong, if you want to offer your dollar stablecoin in the U.S., you should need to register in the U.S. just like we have to go register everywhere else.”
Allaire’s comments come as Senator Bill Hagerty recently proposed a framework for stablecoin issuers while President Donald Trump has promised to make the U.S. a crypto hub.
In a post on X, Ardoino highlighted Tether’s widespread adoption in emerging markets and accused rival stablecoin issuers of engaging in “lawfare” using legal and regulatory frameworks to stifle competition.
Tether CEO Paolo Ardoino has strongly opposed what he describes as competitors’ attempts to use regulatory tactics to undermine USDT, the world’s largest stablecoin.
Spencer argued that such restrictions would harm international stablecoin issuers like Tether and undermine the global dominance of the U.S. dollar.
According to Ardoino, Tether’s strategic holdings of over $115 billion in U.S. Treasuries make it the 18th largest holder of these assets. The stablecoin serves over 400 million people worldwide.
Ardoino’s remarks were in addition to a post by Vance Spencer, co-founder of Framework Ventures, who warned that the upcoming U.S. stablecoin regulation could restrict foreign stablecoin issuers from accessing the U.S. Treasury market.