According to Circle’s CEO Jeremy Allaire, the US government is not taking decisive action towards legalizing stablecoins, causing companies to move to other countries.
In response to this, Allaire urged US leaders to implement legislation to regulate transactions involving digital currencies backed by the dollar.
The delay of the US authorities has resulted in other regions, particularly in Asia and the Middle East, becoming centers for blockchain development and attracting crypto companies.
As a result, the United States is losing control over stablecoins as companies move their operations overseas.
According to a report by Chainalysis, over half of stablecoin transactions are now conducted on platforms outside the US jurisdiction.
The company predicts that in the next few years, regulators may completely lose control over fiat-backed digital assets unless the industry is legalized, preventing investors and trading platforms from leaving the US.