Circle CEO Jeremy Allaire has taken to Twitter to share his reflections on the market dynamics following the collapse of Silicon Valley Bank (SVB). In his tweet, he highlights the large-scale risk-off from USD that is exposed to US banks and US regulatory risk, which is leading to deep market anxiety.
Allaire also notes that players who have had the strongest position with US regulation and US banking system integration are now considered “un-safe”, with fears that assets could be stranded.
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The broader macro risk is driving rotation from USD into BTC/ETH, which Allaire says has already been commented on, so he won’t say more. He also urges US policy makers to think very carefully about what happens next as market participants are shifting into platforms with no oversight, totally opaque bank and risk exposures, and histories of lax financial risk/integrity controls. He warns that this doesn’t end well and that there is serious risk of seeing an entire strategic technology arena slip away from US leadership.
Despite the market turbulence, Circle is committed to operating within a regulatory perimeter, held to high standards, with the highest level of transparency in the industry, and the strongest financial market infrastructure partners. Allaire notes that USDC has not missed a beat, and they have never failed to mint or redeem USDC for $1, including during the past weeks’ stress test. In the past year, they have redeemed $192.4B USDC at $1 and issued $176.9B at $1.
Circle continues to add more transit and settlement banking partners to help the industry get back to a world where always-on digital dollars on blockchains can be integrated into 24/7/365 issuance and redemption. Allaire also mentions that USDC as a protocol and digital currency continues to function on public chains, protocols, and wallets uninterrupted. He concludes by saying that now more than ever, we are seeing the power of new, global, transparent, secure, and always-on blockchain-native financial infrastructure.
The collapse of SVB has caused significant market anxiety, but Circle’s commitment to operating within a regulatory perimeter and maintaining high standards should give investors some confidence. However, the broader macro risk and fear of US regulatory actions on crypto could lead to more players shifting into platforms with no oversight, putting their assets at risk. US policy makers need to carefully consider the consequences of their actions and ensure that the US doesn’t lose its leadership in the strategic technology arena.
#Circle #USDC #Stablecoins #crypto2023 #azcoinnews This article was republished from azcoinnews.com