• Dante Disparte, Circle’s CSO and head of global policy, called for tighter regulations against crypto firms counterfeiting U.S. Dollars.
• He suggested relevant federal legislation around stablecoins to protect consumers from fake USD companies.
• His remarks come as Circle’s USD Coin (USDC) sees a slump in its market dominance.
Crypto Firms Counterfeiting U.S. Dollars
Dante Disparte, the chief strategy officer and head of global policy of the second-largest stablecoin issuer Circle, has blasted crypto firms that create counterfeits of the U.S. dollar. According to a Bloomberg report, Disparte called for relevant federal legislation around stablecoins to protect consumers and prevent investors from companies with fake USD. He questioned the ability of any company to forge the USD using cryptographic methods, insisting that setting relevant rules would maintain transparency and ensure investor safety.
Bank Failures Drive Investors Into Crypto Assets
Disparte noted that several bank failures in the U.S earlier this year drove investors into unsafe and opaque crypto assets overseas, showing the need for sound monetary policy in the United States. He urged lawmakers to create rulesets to prevent digital dollars from competing with those issued by the government, maintaining respect for monetary policy within America’s borders:
Circle’s USDC Market Dominance Slump
Disparte’s remarks come as Circle’s USD Coin (USDC) sees a slump in its market dominance; once favored by institutions, it was negatively affected by other rivals such as Paxos Standard Token (PAX), Tether (USDT), and Gemini Dollar (GUSD). Although USDC remains popular among traders and exchanges due to its backing from Goldman Sachs-backed financial services firm Circle , it has faced stiff competition lately on account of other cryptocurrencies offering similar features at lower costs or better liquidity terms than USDC does .
Tighter Regulations For Stablecoins Needed
To counter this competition , Disparte insisted on tighter regulations around stablecoins so they can be trusted by regulators , businesses , and customers alike . This way , regulatory compliance can be ensured while protecting users‘ funds from fraudsters who are looking for loopholes in existing frameworks . To achieve this goal , he believes there should be rules that respect sound money policies while allowing innovation within approved parameters :