The US should promote USDC — before it’s too late
2 min read
Ignore the doomsayers. The United States is still the world’s leading economy and will remain so in the future. With its global talent pool and world-class institutions, the U.S. has a competitive edge in virtually every emergent technology.
That said, American officials shouldn’t leave the outcome to chance. Bipartisan crypto legislation may be elusive, but plenty of policy levers exist already that could advantage USDC at negligible cost. For starters, the Federal Reserve should greenlight Circle for its reverse repo program, which would backstop USDC with a deep well of highly liquid, risk-free loans.
Similarly, the Securities and Exchange Commission should encourage the proliferation of compliant, tokenized securities denominated in USDC. Meanwhile, regulators should support Circle’s infrastructure initiatives with clear guidance for issues such as on-chain Know Your Customer, Anti-Money Laundering and financial reporting.
For too long, the U.S. has treated Web3 as a regulatory headache rather than as a strategic priority. In the contest for stablecoin dominance, the stakes are too high to ignore. It’s time for the U.S. to pick sides.
Alex O’Donnell is the founder and CEO of Umami Labs and worked as an early contributor to Umami DAO. Prior to Umami Labs, he worked for seven years as a financial journalist at Reuters, where he covered M&As and IPOs.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
