Circle CEO: Regulations Need to Ensure Cryptocurrency Firms Don’t Drain From USA

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With the ongoing regulatory pressure from the US on blockchain and cryptocurrency businesses, payments company Circle’s CEO, Jeremy Allaire has warned the US lawmakers of a possible brain-drain.

Allaire’s Circle has its own cryptocurrency offerings and would feel the effect of tougher regulations for the US lawmakers who are in the throws of choosing a heading. However, he is also confident that the threat of losing a potential future technological edge may sway things. 

Allaire is of the opinion that the fact that US-backed companies are choosing to set up in other more crypto-friendly nations will weigh on the minds of regulators who will not want the US to miss out on this potential expanding market.

Getting people’s attention

The US Senate has stepped in dramatically in the past few weeks in months in regard to learning more about blockchain and cryptocurrency as it starts it path down full regulation of this new industry.

It's hard-line approach to Facebook’s Libra project has however shaken a few companies somewhat. There is now a bit of a fear that the US will not be an easy place to operate a cryptocurrency business. 

“The increase in proliferation of digital asset projects outside the US, the movement of companies to leave the U.S. and projects to get started outside the U.S. is definitely getting people’s attention,” Allaire told the Bloomberg.

However, he did thorize the effect of this on a more positive note. He added: 

“I think it is ultimately going to lead to, ultimately legislative initiatives to try and ensure that there are appropriate safeguards and investor protections but also clarity, which is much needed to allow the technology and industry to flourish.”

In competition

The US, as one of the world’s superpowers, is in constant competition to be at the forefront of new industry, capital, and technology. Thus, its determination in regulating blockchain will go a long way in ots drive to adopt and progress with this technology. 

The fact that its threats already have company’s scurrying means that the US lawmakers will certainly be conscious of the ramifications of this. China, and other asian countries, like Korea, are already leading the way in terms of blockchain growth.

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