Circle CEO blames US crypto crackdown for declining USDC market cap
The market cap of USDC, a stablecoin issued by Circle, has reduced nearly by half over the past six months following a regulatory crackdown and banking crisis. Circle CEO Jeremy Allaire says that a cryptocurrency crackdown by the United States regulators has been a major factor behind the declining market capitalization of its stablecoin, USD Coin (USDC). Circle chief’s comments on the U.S. crackdown come amid heavy regulatory scrutiny following the collapse of the FTX exchange, a banking crisis and USDC’s momentary depegging. During an interview with Bloomberg TV, Allaire noted that there is a “huge amount of concern globally about the U.S. banking system,” and the “regulatory environment in the U.S..” USDC depegged in March, a direct result of the U.S. banking crisis. Circle’s $3.3 billion worth of USDC reserves was stuck with Silicon Valley Bank, which was one of the three crypto-friendly banks shut down by regulators. At the time, Circle had assured its customers that it had the b...