Stablecoin Issuer Circle’s Head of Global Policy on Biden Crypto Policy, Risks, and Standards

On April 9, Dante Disparte, Circle’s Global Policy Head, discussed the Biden administration’s strategy for dealing with risks related to cryptocurrencies, especially focusing on stablecoins and their impact on illicit financing during an interview on Bloomberg TV. Disparte spoke with Sonali Basak and Tim Stenovec from Bloomberg Crypto about important topics concerning the crypto industry, regulatory framework, and security issues.

Addressing Congressional Inaction

Disparte voiced his disappointment over the lack of congressional response to the Biden administration’s initiatives in exploring and regulating the blockchain and digital asset sector. Although the administration has taken the first step by issuing an executive order for a comprehensive study on digital assets, Disparte points out that there is a noticeable absence of legislative advancements. He emphasizes the importance of these laws to empower U.S. regulators and other entities with the appropriate guidelines to manage the industry efficiently. Without this progress, Disparte warns that the sector could be shaped by its less desirable elements.

Circle’s Compliance and Industry Standards

Disparte highlighted Circle’s dedication to regulatory compliance by detailing how the company follows U.S. laws for money transmission, adheres to anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, and observes sanctions. This strict adherence, according to Disparte, could minimize potential risks of illicit activities if the United States passes stablecoin legislation.

Combatting Illicit Activities in Crypto

In reaction to worries over cryptocurrencies being misused for unlawful activities by countries like North Korea and Russia, Disparte advocated for a more complex perspective on the term “crypto.” He stressed that the term itself is neutral and should not be linked with illicit behavior. Instead, he highlighted the significance of distinguishing and dealing with the malicious entities or questionable offerings within the digital economy that might enable illegal deals.

Disparte proposed a collaborative approach, in which industry players and regulators join forces to implement rules and safeguard digital assets from misuse. He highlighted his own opinion piece as well as Deputy Treasury Secretary Adeyemo’s comments to emphasize that the problem doesn’t lie with cryptocurrency per se but rather with those who use it for illicit activities in financial systems.

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2024-04-10 11:54