USDC’s Circle Files with the SEC to Become a Commercial Bank »/>

According to a post on the website of founder Jeremy Allaire, CEO, the USDC stablecoin was filed with the Securities and Exchange Commission to become a federally licensed US national commercial bank. This happens between executives of Tether, his biggest rival, who face a criminal investigation by US prosecutors.

Although the company officially announced its decision to become a bank in its Aug. 9 blog, its S-4 Storage blog on Aug. 6 hinted at the SEC’s plans to become a bank.

second-largest stablecoin issuer aims to become the first full-service cryptocurrency bank authorized by the federal government. rise in the value of cryptocurrencies has evoked regulatory concerns of a bubble, which could spark an exodus similar to a bank run. However, Circle believes that full reserve banking, based on digital currency technology, will eventually give way to a radically more efficient and resilient financial system.

Circle said in a blog post that it is taking the new move alongside the efforts of major US financial regulators.Through the President’s Task Force on Financial Markets, the firm hopes to better manage the risks and opportunities they represent. large-scale private sector dollar digital currencies.

Bringing the digital currency to the mainstream economy

Allaire said Circle has recently expanded the statements to supplement specifications on the stablecoin’s reserve structure. Additionally, the company has committed to releasing details on USDC’s fundamental liquidity as it moves closer to regulatory oversight at the national banking level.

proposed digital currency bank will operate under the governance of the Federal Reserve, Office of the Comptroller of the Currency (OCC), the United States Treasury and the Federal Deposit Insurance Corporation (FDIC), if approved.

Allaire predicts that the USDC’s valuation will rise to hundreds of billions of dollars in circulation, supporting trillions of dollars in economic activity and being widely used in financial services, making Internet commerce applications more secure and robust.

About Circle

Payment technology company Circle was founded in October 2013 as a peer-to-peer payment network of Jeremy Allaire and Sean Neville. Subsequently, it launched a cryptocurrency exchange (Poloniex), an investment app, and a payment service (Circle Pay).

However, most of its focus is on its USD Coin, which was launched three years ago to convert US dollars into blockchain and digital currency tokens. stablecoin has become a popular digital currency and its circulation has risen to more than $ 27 billion in 2021.

Since its inception, Circle, in partnership with Coinbase and through the Center Consortium, has trained the USDC to meet strict regulatory and supervisory standards for money transmission in the United States.

Wayne is a Blockchain enthusiast and cryptocurrency trading expert. Currently, he deals with trending topics in digital currencies.

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