Stablecoins Need a Regulatory Framework, Circle Chief Says

The class of cryptocurrencies known as stablecoins needs a regulatory framework and private sector participation to ensure stable development, Jeremy Allaire, the founder and CEO of crypto finance company Circle Internet Financial, said in an interview with Caixin.

Last month the value of the token issued by algorithmic stablecoin project Terra crashed, raising doubts about the future of such assets. Stablecoins are a kind of crypto-asset pegged to legal tenders such as the U.S. dollar. Bitcoins and other cryptocurrencies are not backed by governments or physical assets, and their value can swing wildly. Allaire and others called for legislatures including the U.S. Congress to create a regulatory framework for stablecoins.