In mid-June, the Federal Reserve proposed new rules for stablecoins. The proposal calls for stablecoin issuers to verify customer identities before opening new accounts or redeeming tokens, effectively applying bank-style anti-money laundering standards to stablecoins.
At first glance, this seems like bad news for Circle (NYSE: CRCL), the issuer of the USD Coin (CRYPTO: USDC) stablecoin. However, those tighter restrictions could actually strengthen USD Coin and make Circle a more compelling investment.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Circle promotes USD Coin as a tightly regulated, US-centric stablecoin. It's also firmly backed by U.S. dollars and Treasuries. Its main competitor, Tether (CRYPTO: USDT), is issued by Hong Kong-based iFinex and backed by an opaque mix of cash, commercial paper, and other ***** ets. While Tether dominates the overseas market, USD Coin leads the U.S. market.
Circle's regulatory compliance makes USD Coin a trustworthy alternative to U.S. dollars for retail and institutional investors. But in many overseas markets, where investors consider stablecoins a hedge against inflation and currency devaluation, Tether's immunity from U.S. regulations -- along with its higher global liquidity -- makes it a better choice than USD Coin.
At first glance, this seems like bad news for Circle (NYSE: CRCL), the issuer of the USD Coin (CRYPTO: USDC) stablecoin. However, those tighter restrictions could actually strengthen USD Coin and make Circle a more compelling investment.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Circle promotes USD Coin as a tightly regulated, US-centric stablecoin. It's also firmly backed by U.S. dollars and Treasuries. Its main competitor, Tether (CRYPTO: USDT), is issued by Hong Kong-based iFinex and backed by an opaque mix of cash, commercial paper, and other ***** ets. While Tether dominates the overseas market, USD Coin leads the U.S. market.
Circle's regulatory compliance makes USD Coin a trustworthy alternative to U.S. dollars for retail and institutional investors. But in many overseas markets, where investors consider stablecoins a hedge against inflation and currency devaluation, Tether's immunity from U.S. regulations -- along with its higher global liquidity -- makes it a better choice than USD Coin.
4 months ago
