Sen. Lummis: It’ll Pay to ‘Choose Circle Over Tether’ Under U.S. Stablecoin Proposal

Circle
Internet
Financial
would
have
a
distinct
advantage
over
global
stablecoin
leader
Tether
under
U.S.
regulations
along
the
lines
being
suggested
by
new
legislation,
according
to
one
of
the
latest
bill’s
authors,
Sen.
Cynthia
Lummis
(R-Wyo.).

“Let’s
say
you’re
a
U.
S.
consumer,”
and
you’re
not
an
expert
in
the
details
about
specific
stablecoin
issuers,
Lummis
told
CoinDesk
TV
in
an
interview.
She
argued
such
a
person
is
likely
to
favor
companies
overseen
by
U.S.
regulations.

“If
that
were
me,
I
would
choose
Circle
over
Tether,”
said
Lummis,
who
introduced
the

latest
stablecoin
legislative
proposal
this
week
with
her
usual
crypto
partner
Sen.
Kirsten
Gillibrand
(D-N.Y.).

Stablecoins
are
designed
to
be
tokens
with
steady
value
–
typically
pegged
to
the
U.S.
dollar
–
and
are
vital
for
use
in
other
crypto
trading
or
contracts.
The
Lummis-Gillibrand
proposal
is
positioned
as
a
work-in-progress
bill
meant
to
start
conversations
and
to
be
modified
for
melding
with
whatever
version
emerges
from
the
House,
she
said.
But
as
it
stands,
it
echoes
other
previous
legislative
efforts
in
demanding
a
bank-like
regulatory
regime
for
stablecoin
issuers.

“This
is
very
much
oriented
towards
a
U.S.-regulated
company,
and
so
Tether,
if
it
chooses
to
remain
offshore
…
that’s
a
business
choice
for
them,”
Lummis
said,
and
the
company
and
token,

(USDT),
would
presumably
be
picked
up
by
other
regulators
and
continue
operating
beyond
the
U.S.
system.
“We’re
very
focused
on
companies
that
are
located
and
embedded
in
the
U.
S.
economy.”

Still,
she
said
she’d
expect
existing
stablecoin
leaders
such
as
Circle
would
have
major
regulatory
hurdles
to
clear,
such
as
getting
licensed
with
a
federal
regulator.
(Circle,
as
it
exists
today,
would
not
be
allowed
to
issue
its

(USDC)
under
the
proposed
bill,
which
demands
that
businesses
issuing
more
than
$10
billion
in
tokens
be
regulated
depository
institutions
–
either
on
the
state
or
federal
level.)

Circle
hasn’t
responded
to
requests
seeking
comment
on
the
bill.

“We’re
glad
we
went
ahead
and
put
it
out
just
to
get
some
good
feedback,”
Lummis
said,
describing
it
as
a
“very
firm,
solid
regulatory
framework”
that’s
meant
to
satisfy
lawmakers
who
are
worried
about
the
crypto
disasters
they’ve
been
witnessing
since
2022.
“We’re
happy
to
adjust
it
according
to
changes
the
House
might
want
to
make,
changes
the
White
House
might
want
to
make,
changes
the
industry
might
want
to
make.”

While
cryptocurrency
legislation
remains
a
longshot
for
this
session
of
Congress,
when
viewing
its
current
political
turmoil,
party
divisions,
workload
and
proximity
to
elections,
several
prominent
lawmakers
continue
to
issue
optimistic
statements.
Recently,
Senate
Banking
Committee
Chairman
Sherrod
Brown
(D-Ohio)
reportedly
said
he’s

willing
to
talk
about
stablecoins
(though
alongside
a
number
of
his
other
banking
priorities),
and
Senate
Majority
Leader
Chuck
Schumer
(D-N.Y.)
also
said
he’s

open
to
it.

The
House
Financial
Services
Committee’s
heads
recently
met
with
Schumer
about
moving
crypto
legislation,
though
it’s
unclear
how
far
those
talks
have
advanced.
Lummis
said
Thursday
that
she’s
still
waiting
to
see
what
emerges
from
the
committee’s
chiefs,
Reps.
Patrick
McHenry
(R-N.C.)
and
Maxine
Waters
(D-Calif.).
Spokespeople
for
both
lawmakers
did
not
return
requests
for
comment
about
the
Lummis-Gillibrand
bill.

Industry
insiders
have
been
studying
the
legislation
closely
since
its
release,
and
some
have
said
they
remain
uncertain
about
its
potential
effects
and
requirements.

Read
More:



U.S.
Senators
Lummis,
Gillibrand
Take
on
Stablecoin
Legislation
With
New
Bill

Nikhilesh
De
contributed
reporting.