Calls to Adopt
CEO of peer-to-peer payments platform Circle, Jeremy Allaire sent a formal letter yesterday to Senior US Treasury staff encouraging regulators to work alongside cryptocurrency and blockchain on key-issues to drive innovation.
Allaire is a true advocate of technology, believing that blockchain has the potential to be the most important advancement of human history. Blockchain’s impact reaches far beyond the realm of finance. In fact, every single network on the internet has the opportunity to utilise this technology to their benefit.
He is also a major proponent of cryptocurrency. Circle’s USDC is the most regulated dollar stablecoin on the market and has recorded parabolic growth recently, circulation soaring over 310% in less than five months to $3 billion.
The Internet Era
The 3-page document parallels the current developments of cryptocurrency and blockchain, to the rise of the internet. “It’s 1996 all over again” Allaire nostalgically states.
In the letter, he argues that the open-source protocol and global communication network of the internet have vastly contributed to the democratic technological landscape we witness today.
His point denotes that if regulators happened to stifle innovation in the early-days of the internet due to fears of privacy, lost sovereignty and illicit legal practises, then sectors like media, commerce and communication would never have revolutionised into the powerhouses they are today.
In a series of tweets on 25th Nov, Coinbase CEO Brian Armstrong revealed rumoured plans from the U.S. Treasury and specifically Secretary Mnuchin to heavily legislate self-hosted cryptocurrency wallets before his term ends.
Allaire agrees with the sentiment of Armstrong, believing this is a blanket approach, an ignorant attempt to categorise the market as one in a bid to manage legislation, rather than embracing the idiosyncratic value of each project in the space and regulating accordingly.
“I believe the proposal would inadequately address the actual risks that are at issue, would significantly harm industry and American competitiveness, would continue to yield economic and industry advantage to Chinese firms, and would have significant unintended consequences around the broader use-cases for this technology.”
He concluded by saying:
“It is my great hope that US Treasury can ensure that any further rule-making in this area accepts that software and protocol level solutions can address these issues (KYC compliance, privacy and PII data security) and provides a meaningful safe harbor for the industry to work on these over the next 1-2 years.”