Tweet

Jeremy Allaire

23 Dec, 13 tweets, 3 min read

1/ More major US government action on crypto, this time from the White House working group on financial markets, with a slate of proposed policy around USD stablecoins. We have a few things to say on the matter! home.treasury.gov/news/press-rel…

2/ Very quick reaction -- nearly everything that is being proposed is highly aligned with how Centre operates and USDC is issued today. Broadly, this is a very significant development in terms of acknowledging USDC as emerging significant payment infrastructure in the US.

3/ The largest regulator of US national banks seems to agree: occ.treas.gov/news-issuances…

4/ Governance, reserve policies, cyber and security policies, robust KYC/AML/CFT programs, comprehensive audits, transparency, etc. are all hallmarks of Centre and USDC. We are way ahead of the pack here.

5/ Liquidity, custody in US banking system, multiple reserve banking partners, safe underlying reserves, transparent user agreements with clear policies on 1:1 redeem-ability, etc. These are also all foundations for how Centre and USDC has been governed and offered.

6/ This paves the way for stablecoins to become a major part of the payments and settlement infrastructure of the financial system. With Centre expanding, expect many more FI's to be involved with USDC, and expect more Centre stablecoins.medium.com/centre-blog/fi…

7/ But, there are clearly areas where there needs to be more work, around the use of stablecoins with unhosted wallets and DeFi protocols. The statement implies that stablecoin user identities must be known across unhosted wallets.

8/ This is clearly Mnuchin's reference to the PROPOSED Fincen rules on transaction reporting for unhosted wallets, and will be vigorously fought. Under those rules, large transactions in stablecoins with unhosted wallets would require capturing name and physical address.

9/ The PWG statement basically cross-references the midnight rule-making attempt by Mnuchin. We will defeat that attempt both because the substance of the rules are extremely problematic, and the process will be challenged.

10/ Most importantly, it is vital that the US government carefully considers how digital dollar stablecoins work over the internet and tap into the massive innovation of public chains, DeFi, smart contracts, etc.

11/ Getting this right isn't just about getting regulations right, it's about the crypto industry stepping up its game around decentralized identity models, identity attestation approaches, that can preserve privacy but enable accountability. Crypto itself provides the answers.

12/ With the current White House administration winding down , it's good to get their views on stablecoin policy, and I know this represents a lot of work from agency staff on these issues too.

13/ We are looking forward to picking this conversation up with the Biden Administration, and the many many leaders and civil servants across the US Treasury, SEC, CFTC and others as we usher in the next major phase of the global financial system.

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More from @jerallaire

Jeremy Allaire

@jerallaire

20 Dec

1/20 Here's a deep dive on what's really going on, including the behind the scenes, with the Treasury FinCen proposed rule on "unhosted wallets" and new record-keeping and reporting rules. Hang on to your hat.

2/20 This specific effort has been a personal mission for Secretary Mnuchin for multiple years. His own view is far more aggressive than the proposed rule put forward.

3/20 His original plan was to just drop this as a final rule with zero notice for public comment, as a "midnight rulemaking" on his way out of office. This actually didn't have broad support, in fact very few people were even aware of this plan.

Read 20 tweets

Jeremy Allaire

@jerallaire

18 Dec

1/5 Very quick summary on the PROPOSED FinCEN rule. This is a proposal and open for public comment. People who care should file comments, the document tells you how.

2/5 You have until Jan 4th. The first thing we need to do is fight that and ensure that there is more time than the holidays to comment on a rule that has a massive impact on our industry.

3/5 The rule requires MSBs/Banks to get counter-party name and address for sends/receives for any transaction > $3k. users can provide this info to the banks/MSBs.

Read 5 tweets

Jeremy Allaire

@jerallaire

9 Dec

1/15 Circle is announcing and launching a major new wave of upgrades to our payments and treasury infrastructure for the internet. If you’re curious about what we’ve been up to, read the blog and this tweet thread. circle.com/blog/circle-la…

2/15 We’re executing on the vision that digital currency becomes the core of storing and managing money and facilitating transactions. Lots of firms are talking about “embedded finance”, “banking as a service”, “treasury as a service”, we’re doing it digital currency native.

3/15 It starts with a Circle Account. Connect, convert, store and use stablecoins -- store them securely, make payments with them, convert in and out of existing banks, generate yield. This is a free service for any sized company. circle.com/en/circle-acco…

Read 15 tweets

Jeremy Allaire

@jerallaire

9 Dec

26/30 Collectively, as society, we can decide to take risks and know that there are unknowns, that the structure of how money works might not resemble the way it has for the past 50 years or 75 years.

27/30 We should be excited and inspired about imagining something better, and take inspiration from what we’ve collectively achieved with software and the internet over the past 25 years.

@joebiden

28/30 If all we did is worry about and stop and try and address every conceivable risk before doing something, we’d never do anything truly great. I hope governments and policy makers are listening. Hey @joebiden !!!

Read 5 tweets

Jeremy Allaire

@jerallaire

9 Dec

1/30 Just this week, $USDC crossed over 3 Billion in circulation, and has handled over 230B in on-chain transactions. We *are just getting started*! Here’s how we got here, and here’s the path to 1 Trillion USDC in circulation. medium.com/centre-blog/us…

@circlepay

2/30 USDC was launched to be a standard that the industry could build on, so @circlepay and @coinbase created Centre Consortium (@centre_io), and built the first governance arrangement for fiat digital currency. centre.io

3/30 The vision was broad -- connect every person, every merchant, and every financial service in the world over open internet protocols and blockchains -- but we started with a clear focus: build a safe, transparent, compliant and ALWAYS redeemable at $1 digital currency.

Read 25 tweets

Jeremy Allaire

@jerallaire

8 Dec

@squawkCNBC

1/10 A lot of important messages conveyed in today’s interview on @squawkCNBC with @andrewrsorkin -- regulatory heat, Biden and #crypto optimism, $USDC vs CBDC, way too much to discuss in 7 minutes...

2/10 What’s the political climate in DC for crypto going into a Biden administration? It’s a mixed bag, on the left and right, but we believe that the Biden admin is going to end up being very big and very constructive on blockchain, crypto and digital currency.

3/10 Biden Administration is focused on infrastructure and increased American economic competitiveness, and blockchain and digital currency are to play a massive role just like earlier commercialisation of the internet in the 90s.

Read 10 tweets

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