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Circle’s CEO: “We are seeing crypto firms fleeing the US”

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The CEO of Circle, Jeremy Allaire, has sharply criticized the current actions of the US authorities against the crypto industry. “We are seeing crypto companies fleeing the United States,” Allaire said. “People prefer to put their money in the Bahamas because they’re afraid of what’s going to happen in the US.” That’s what Circle’s CEO said on March 23, 2023 at Paris Blockchain Week.

Circle is the company behind USDC, the second largest stablecoin after Tether, with a market cap of nearly $35 billion. The USA is currently experiencing the biggest banking crisis since 2008. In addition, the US authorities are taking an increasingly tough course against crypto companies. The SEC launched a wave of lawsuits. The accusation almost always: unauthorized issue of securities. Although there are increasing reports that the crypto company Ripple with its token XRP is likely to emerge as the winner of the long-standing legal dispute against the SEC, according to the Circle CEO, the crackdown on the crypto space is still appropriate for projects in this area Reason enough to take flight.

The banks are running out of crypto space

At the same time, two of the key banks, Signature and Silvergate, collapsed. Thousands of companies depended on the two money houses to exchange cryptocurrencies for US dollars. “It’s hard for crypto companies anyway to find a bank to do business with. This is now made even more difficult. You cannot open a JPMorgan account. It’s not like you can call them and ask, ‘Are you taking my money?’

Some critics, such as analyst Nic Carter, accuse the US government of deliberately cutting off the industry from the banking system. They speak of an “Operation Chokepoint 2.0.” Circle was also affected by the fall of Silicon Valley Bank. The company held $3.3 billion in reserves there. The stablecoin briefly lost its peg to the US dollar due to a market panic.

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