Circle CEO joins the criticism of the US Treasury Department’s “wallet ban”
11. December 2020
Jeremy Allaire asks the American government to reconsider the proposed regulation.
Jeremy Allaire, CEO and co-founder of the crypto payments company Circle, wrote an open letter to the US Treasury Department on December 9, asking the department for leniency in regulating the crypto industry.
Accordingly, Allaire warns regulators that some of the regulations they intend to make pose a direct risk to US competitiveness, and could have unintended side effects in the blockchain and crypto areas
The Circle CEO is referring to planned regulatory provisions that would prohibit so-called “self-managed crypto wallets”. However, Allaire believes that this draft does not really address the risks facing the industry:
“I find that the draft does not adequately deal with the actual risks, does considerable damage to the industry and American competitiveness, but gives Chinese companies further competitive advantages and also has unintended side effects on the wider use of the technology.”
Rather, Allaire would like the crypto industry and regulators to have 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 further: “But not only as an industry we need this time, but also to properly structure our cooperation with the financial supervisory authorities and to be able to work together to develop rules and regulations that make sense for this new world.”
Thus Allaire joins the criticism of Congressman Warren Davidson and Tom Emmer, the “ban Wallet” at yesterday’s Dec. 9 in a separate letter against the planned pronounced had.
Some crypto experts again accuse the draft regulation of linguistic inaccuracy, since it is not clear what “self-managed wallets” are exactly. Blockstream chief strategist Samson Mow pointed out this semantic problem on December 9th on Twitter .