Regulatory uncertainty and banking crisis could urge investors outside the United States: CEO from Circle

Regulatory uncertainty and banking crisis could urge investors outside the United States: CEO from Circle

Jeremy Allaire-CEO by Circle Internet Financial Ltd. -argued that US investors could soon move due to the lack of appropriate regulations and the growing banking crisis.

The collapse of Silicon Valley Bank (SVB) In March in March, serious problems for the StableCoin issuer. The USDC was decoupled from $ 1 to up to $ 0.87, after Circle had disclosed a massive commitment of USD 3.3 billion to the financial institution. However, the problem has mastered and ensured that investors are not affected.

"Critical moment" in the USA

In a recent interview for Bloomberg, Allaire recommended that America's regulatory challenges could. "To take risks from the USA":

"We see great concern worldwide about the US banking system. We are concerned about the regulatory environment in the USA."

Jeremy Allaire, CNBC

The numerous catastrophes in the past year, including the Terra crash and the FTX core melt, have left a dark spot on the entire cryptocurrency field, while many believe that these events are due to the lack of adequate surveillance.

Allaire believes that the US government should act quickly, and emphasizes the progress that the European Union, Singapore and Hong Kong has recently achieved:

"It is a critical moment here in the USA, and as I like to say, it is really a moment for the congress to get involved."

Another known person from the crypto industry who supports this thesis is the CEO of Coinbase-Brian Armstrong. He recently indicated that his stock exchange could go abroad, unless the American guards impose relevant rules for the sector of digital wealth.

USDC and SVB

In addition to the regulatory hurdles, the CEO of Circle mentioned the banking problems of the strongest economy in the world and the effects on investors and other companies.

The local authorities closed three leading banks last month: Silvergate Capital, Signature Bank and Silicon Valley Bank. They all served several cryptocurrency customers and caused them considerable losses.

also First Republic also had major problems, and despite the government interventions, the winning report was weak for the first quarter and pressed the share yesterday by over 50 %.

Kreis, however, had a full 3.3 billion dollar engagement at SVB, which led to panic among investors and led to the fact that the USDC fell well below its target of $ 1.

Despite the problems, the organization based in Boston assured that it continues the normal process of its business, and explained that customers will not be affected:

"Circle, as required by law and are available in accordance with the prescription of the transfer of money with stored value, behind USDC and cover any incorrect amounts with corporate resources, if necessary with the inclusion of external capital."

The StableCoin restored its $ 1 rating in the following days and has not recorded any fluctuations since then. Nevertheless, market capitalization suffered a big blow and fell from over $ 43 billion in March to currently around $ 30 billion.

Selected image with the friendly approval of Air

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