July 2019 Summaries

Circle CEO Jeremy Allaire testified before the Senate Committee on Banking, Housing, and Urban Affairs, emphasizing the need for the U.S. to establish a national framework for digital assets to remain a leader in blockchain technology. Allaire argued that without clear regulations, the U.S. risks falling behind in the economic transformation brought by digital assets, as current SEC guidance limits options for U.S. customers. He highlighted the inevitability and benefits of digital innovations and stressed that stablecoins are crucial for mainstream crypto adoption. Additionally, he pointed out that blockchain technology can enhance privacy and data protection. Allaire also revealed that Circle expanded to Bermuda due to its stringent crypto regulations, contrasting with the regulatory ambiguity in the U.S. Senate Banking Committee Chairman Mike Crapo echoed the need for clear rules, stating that the U.S. should lead in developing these technologies.

Jeremy Allaire, CEO of Circle Internet Financial, is set to be the sole representative from the crypto industry to testify before the Senate on the need for clear regulations for digital assets. The hearing, titled "Examining Regulatory Frameworks for Digital Currencies and Blockchain," follows recent Senate discussions on Facebook's Libra and coincides with Circle's expansion in Bermuda, where it launched a subsidiary with regulatory licensing. Circle, known for its advocacy for US policy changes, is considered the most regulated crypto-finance company globally, holding multiple licenses, including an E-Money Issuer License in Europe and Money Transmitter Licenses in 48 US states. The company also owns SeedInvest, a broker-dealer and Alternative Trading System, and recently became the first major crypto company to receive a comprehensive Digital Assets Business License in Bermuda. Despite regulatory uncertainties, Circle continues to push for policy changes to ensure the US economy benefits from crypto innovation.

Circle Internet Financial is expanding its global presence by launching a new subsidiary in Bermuda, strategically positioning itself to serve non-US Poloniex customers and offer a range of new digital asset services. The company has received a Class F Digital Assets Business Act (DABA) license, a comprehensive regulatory framework that supports the operation of crypto financial services and emphasizes high standards for risk management and anti-money laundering. By capitalizing on Bermuda's forward-thinking regulatory environment, Circle aims to deliver innovations in digital assets while maintaining compliance and customer protection. The move aligns with Circle's vision of creating a more efficient and equitable global financial system, although US regulatory constraints currently limit the offering of these services to US customers. Circle's collaboration with Bermuda's government, led by Premier David Burt, reflects a shared commitment to fostering innovation and growth in the digital asset industry.

Circle Internet Financial released an attestation report conducted by Grant Thornton LLP, detailing the US dollar reserves backing the USD Coin (USDC) as of June 30, 2019. The report confirmed that the number of issued and outstanding USDC tokens, totaling 366,619,335, did not exceed the US dollars held in custody accounts, which amounted to $366,857,842. Grant Thornton LLP will continue to provide monthly attestation reports to ensure transparency and trust in Circle's USDC reserves. Circle is focused on enhancing the accessibility and efficiency of money movement, aiming to increase global economic opportunities.