Circle CEO Says Stablecoin Legislation Will Expand Digital Dollar Usage

Jeremy Allaire, CEO of Circle, stated in a Bloomberg interview on September 16 (local time) that U.S. stablecoin legislation will be a turning point for expanding the use of digital dollars like USDC into banking, capital markets, and corporate payments. He noted that with the passage of the GENIUS Act set to take effect in January 2024, digital dollars such as USDC can become legally recognized electronic currency within both U.S. and global financial systems.

Allaire explained that starting in January, digital dollars like USDC will be legally recognized electronic currency within the U.S. financial system and globally, allowing banks, capital markets, payment companies, and general businesses to use them as easily as cash. He highlighted that the current global scale of non-interest-bearing cash and demand deposits is approximately $6 trillion, and when considering utility from payments and transactions, the actual market could be significantly larger than traditional finance systems.

Allaire also stated that safe digital dollars can drive exponential growth in transaction volume and currency circulation speed, similar to how internet infrastructure lowered costs and boosted usage. He emphasized that while delays in processing the Clarity Act may affect Circle's strategy, the company remains focused on federal stablecoin legislation, which has already secured bipartisan support, providing a legal foundation for expansion.

He noted that the Federal Reserve and other key regulatory bodies are developing rules for implementing the GENIUS Act, with Circle National Trust playing a central role in USDC infrastructure. This will enable Circle to provide digital dollar technology and services to financial institutions and global businesses. Allaire also expressed interest in market structure legislation related to trading markets, futures markets, and decentralized finance.

"The spread of crypto-based financial infrastructure is an irreversible trend," Allaire said, adding that even if federal law takes months or years to finalize, it represents a massive, irreversible shift that will completely reorganize the financial system.