Jeremy Allaire, co-founder and CEO of Circle, a peer-to-peer payment technology company founded in 2013 and issuer of USDC fixed money, said that recent cryptocurrency regulations for US banks are historic milestones.
Making statements in a new Real Vision speech, the internet entrepreneur evaluated the recommendations of US regulatory agencies.
Allaire highlighted the importance of the instructions of the Monetary Control Office OCC, which allows banks to use fixed money, as well as the instructions of the President's Working Group for Financial Markets. Stating that two situations are of great importance for the cryptocurrency universe and financial future, the successful CEO used the following statements:
“I think OCC's permission on this issue is a huge turning point. Some steps were taken before coming here. The recommendation of the President's Working Group for the use of dollar-based fixed currencies in the United States… Thus, some expectations began to emerge for the issue and operation of fixed money. OCC's guidance is also very important. OCC said, "Okay, if you are a bank in the US financial system, then you can use fixed money as payment infrastructure." Even the bank can issue this money itself. Of course these; You can use it on a par with ACH, Swift and Debit Network. In addition, how to classify all of these and what kind of an electronic store of value is defined.
"Bitcoin paves the way for Ethereum to become an infrastructure to the mainstream system"
Circle CEO also stated that, thanks to referrals from these authority institutions, there is also the possibility for banks to bring open blockchains to the mainstream financial system:
“OCC also provides guidance and guidance on how to use open blockchains in this sense. Therefore; It paves the way for Bitcoin, Ethereum or other public blockchain networks to become the market infrastructure for the mainstream financial system in the US. This is a huge improvement "
The Circle CEO is also optimistic about the US Securities and Exchange Commission's SEC's actions to clarify how brokers manage digital assets:
"OCC's guidance is important. Their practice came after 3 years in December, after the SEC's guidance, which finally made clear that brokers and intermediaries could also store and send digital assets under the custody rules. Clarified how brokers and intermediaries can do this. This included the transactions of digital assets considered securities on public blockchains. So, ultimately, we have the SEC and OCC guarantee that public blockchains can become a payment infrastructure for securities and instruments such as cash in the US. This is a huge but a huge deal and development… At the end of course, naturally, the markets responded positively to this. Because now banks can also trust this system. Therefore, banks can rely on it whether it is a cryptocurrency broker or a custody service. "
