Circle CEO Jeremy Allaire has denied claims that USDC will be used for transit fees in the Strait of Hormuz. Speaking at a press conference in Seoul, Allaire stated that this scenario is “extremely unlikely.”
Allaire emphasized that Circle operates with strict regulatory compliance standards and works closely with global authorities. Therefore, he stated, a regulated stablecoin like USDC is unlikely to be preferred in transactions carrying sanctions risks. According to the CEO, individuals and entities under sanctions generally prefer to use less regulated alternative stablecoins.
Allaire also pointed out that due to USDC’s technical structure, assets at specific addresses can be frozen quickly. He said this makes USDC unattractive for illegal or sanctioned transactions.
These statements followed a previous report by the Financial Times, which suggested that Iran might demand Bitcoin or Chinese yuan as transit fees from ships passing through the Strait of Hormuz. These claims sparked brief debate in the cryptocurrency market.
Experts note that while the use cases for stablecoins are expanding, regulatory frameworks play a decisive role in such geopolitical scenarios. Circle’s statements once again highlight that USDC is positioned primarily for regulated financial transactions.
*This is not investment advice.
