Senator Cynthia Lummis, one of the authors of the latest US stablecoin bill, stated in a recent interview that USDC issuer Circle Internet Financial would have a distinct advantage over global stablecoin giant Tether (USDT) under US regulations.
Senator Lummis argued that a US consumer who is not versed in the details of specific stablecoin issuers may prefer companies that are overseen by US regulations. “If it were me, I would choose Circle over Tether,” Lummis said.
The senator emphasized that the proposed legislation is largely aimed at cryptocurrency companies regulated by the United States. “If Tether chooses to stay offshore, that is a business choice for them,” Lummis said. He added that the company and its token USDT will likely come under control from other regulators and will continue to operate beyond the US system.
But Lummis acknowledged that existing stablecoin leaders like Circle would face major regulatory hurdles, such as obtaining a license from a federal regulator. Under the proposed bill, Circle would not be allowed to issue its USDC as it is today. The bill requires businesses that issue more than $10 billion in tokens to be state or federally regulated custodians.
“We're happy to go ahead and put this out there just to get the good feedback,” Lummis said, describing the proposal as “a very robust, stringent regulatory framework.”
*This is not investment advice.
