Circle Internet Financial would have a distinct advantage over global stablecoin leader Tether under U.S. regulations along the lines being suggested

Sen. Lummis: It'll Pay to 'Choose Circle Over Tether' Under U.S. Stablecoin Proposal

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2024-04-25 23:30:09

Circle Internet Financial would have a distinct advantage over global stablecoin leader Tether under U.S. regulations along the lines being suggested by new legislation, according to one of the latest bill's authors, Sen. Cynthia Lummis (R-Wyo.).

"Let's say you're a U. S. consumer," and you're not an expert in the details about specific stablecoin issuers, Lummis told CoinDesk TV in an interview. She argued such a person is likely to favor companies overseen by U.S. regulations.

"If that were me, I would choose Circle over Tether," said Lummis, who introduced the latest stablecoin legislative proposal this week with her usual crypto partner Sen. Kirsten Gillibrand (D-N.Y.).

Stablecoins are designed to be tokens with steady value – typically pegged to the U.S. dollar – and are vital for use in other crypto trading or contracts. The Lummis-Gillibrand proposal is positioned as a work-in-progress bill meant to start conversations and to be modified for melding with whatever version emerges from the House, she said. But as it stands, it echoes other previous legislative efforts in demanding a bank-like regulatory regime for stablecoin issuers.

"This is very much oriented towards a U.S.-regulated company, and so Tether, if it chooses to remain offshore … that's a business choice for them," Lummis said, and the company and token, (USDT), would presumably be picked up by other regulators and continue operating beyond the U.S. system. "We're very focused on companies that are located and embedded in the U. S. economy."