Circle CEO agrees with criticism of the US Treasury Department’s
Circle CEO agrees with criticism of the US Treasury Department’s „wallet ban
Jeremy Allaire asks the US government to reconsider the proposed regulatory regime.
Jeremy Allaire, Managing Director and co-founder of the crypto payment service provider Circle, wrote an Open Letter to the US Treasury Department on 9 December, asking the Department for leniency in regulating the crypto industry.
Accordingly, Allaire warns regulators that some of the regulations they intend to introduce pose a direct risk to US competitiveness and could have unintended side effects by Bitcoin Revolution in the block chain and crypto sectors.
The Circle CEO refers to proposed regulatory measures that would ban so-called „self-managed crypto-wallets“. However, Allaire believes that the current draft does not really take into account the risks faced by the industry:
„I believe that the draft does not adequately address the real risks, does considerable damage to the industry and to American competitiveness, but gives Chinese companies further competitive advantages, and would also have unintended side-effects on the wider use of the technology“.
Rather, Allaire would like to see the crypto industry and regulators given time to find a common path to crypto regulation
„The industry will probably need another 1-2 years to get the technology under control,“ said the Circle CEO. And he continued: „But not only as an industry we need this time, but also to be able to work together with the financial regulators in a proper way and to jointly develop rules and regulations that make sense for this new world“.
Allaire thus joins the criticism of Congressmen Warren Davidson and Tom Emmer, who in a separate letter yesterday, December 9, had spoken out against the planned „wallet ban“.
Some crypto experts, in turn, accuse the draft regulation of linguistic imprecision, as it is not clear anyway what exactly „self-administered wallets“ are. Blockstream chief strategist Samson Mow accordingly pointed out this semantic deficiency on Twitter.