Circle CEO Jeremy Allaire has urged the US Securities and Exchange Commission (SEC) not to regulate stablecoins as securities, Bloomberg has reported.
He has made the comments during an event in Washington D.C. last Wednesday. He has argued that stablecoins could provide a more efficient and cost-effective way to transfer money and enable more people to access financial services.
According to him, the SEC should focus on regulating stablecoins as commodities, rather than securities. He has argued that treating them as securities would be “overly burdensome” and would limit their potential to revolutionize international payments.
He has added that the SEC should work with other regulatory bodies, such as the Financial Crimes Enforcement Network (FinCEN), to ensure that stablecoins are compliant with anti-money laundering and counter-terrorism finance regulations.