People want to see regulated firms that have major global accounting firms, says Circle’s CEO

• Jeremy Allaire believes it is important for more crypto companies to become SEC-registered.

• He added that there is a need for regulated firms in the cryptocurrency space.

• Allaire says he stores assets on both cold storage wallets and regulated crypto platforms.

More crypto companies need to be SEC-regulated

Jeremy Allaire, the CEO of Circle, told CNBC in a recent interview that he believes more cryptocurrency companies should be SEC-regulated. Circle is the company behind the USDC stablecoin.

“Right now, everyone is trying to ask ‘what are safe places to hold your crypto?'” says @circle CEO @jeremyallaire20. “People want to see regulated firms that have major global accounting firms that are providing public company levels of audit.” pic.twitter.com/2dsa3LxJHP

— Squawk Box (@SquawkCNBC) December 14, 2022

When asked if he would leave his money on Binance, Allaire said;

“I think right now, everyone is trying to ask, ‘what are safe places to hold your crypto? People want to see regulated firms that have major global accounting firms that are providing public company levels of audit.”

He added that storing coins in external wallets where users hold can hold their tokens and be in charge of their keys is an excellent choice. However, he added that more companies in the space need to be regulated by the Securities and Exchange Commission (SEC).

When asked if Circle is using cold storage wallet or if it had funds in some crypto platforms. Allaire said;

“The Allaire family has a mixture of cold storage and qualified, regulated custodians. These companies are regulated inside the United States.”

The stablecoin war heats up

The past few months have seen an increasing war amongst stablecoin issuers in the cryptocurrency space. In September, Binance, the world’s leading crypto exchange, announced that it would begin auto-converting USDC, USDP, and TUSD to BUSD (Binance USD) in a bid to enhance liquidity and capital efficiency for users.

Last week, Coinbase urged its users to swap their USDT stablecoin for USDC. According to Coinbase, USDC is the more trusted and reputable stablecoin.

USDT remains the leading stablecoin, with a market cap of $65 billion. It is closely followed by USDC with a $45 billion market cap, while Binance’s BUSD has an $18 billion market cap.