USDC stablecoin issuer Circle is likely set to make a big announcement soon following the recent revelation that US-based crypto exchange Coinbase acquired a stake in the company. The deal announcement came at a crucial time when the US lawmakers are working on a bill to regulate the stablecoin market.
The USDC Ecosystem Boost
Faisal Khan, a crypto influencer, revealed that Circle is going to publish something that reveals details on boosting the USDC ecosystem. This could be a report bringing more transparency to the stablecoin audits and the reserve funds, or a new announcement that could involve a Coinbase-like deal. According to the influencer, Circle Co-founder and CEO Jeremy Allaire will soon publish the USDC update.
— Faisal Khan (@babushka99) September 4, 2023
On the other side, Paul Grewal, the Chief Legal Officer at Coinbase, expressed his opinion on the stablecoin legislation in the United States. He said the regulatory environment around the US stablecoin legislation is the “most confused.”
Stablecoins Are Here To Stay
Grewal stressed on the question of whether or not the United States could embrace the stablecoin market or lose it offshore. In June 2023, the US House Financial Services Committee had released a draft stablecoin bill “The Future of Digital Assets: Providing Clarity for the Digital Asset Ecosystem.” However, there was a no deal scenario in the US Congress as negotiation talks failed.
Of all the hostilities towards digital asset legislation, the hostility towards US stablecoin legislation is the most confused. Dollar-backed stablecoins are here whether you like it or not. The only question is whether we’d rather them onshore and regulated, or offshore and not.
— paulgrewal.eth (@iampaulgrewal) September 4, 2023
In the last one year, the USDC market cap fell from $52 billion to $24 billion currently, whereas during the same time frame, the Tether USDt (USDT) market size grew from $68 billion to $83 billion currently.
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