Circle Reportedly Applying For Charter, Hails Cooperation Shown By OCC

Jeremy Allaire, CEO of Circle is hoping for organization’s affirmative relationship with officials will assist its banking application upo filing.
Circle CEO also unveiled that organization is in talks with regulators over a bank charter and is progressing affirmatively.
If this approval is granted, it could prove vital to its future. US regulators and Federal Reserve have called for extra regulations.

Circle’s Banking Holy Grail

Jeremy Allaire, CEO of circle made revelation that the organization is in discussions with regulators regarding a bank charter and is progressing affirmatively in that direction.

While several in cryptocurrency community would embrace Circle’s ambition, regulators might not outrightly approve such requests because of nature and degree of risks associated with crypto sector.

However, Circle appears to be unfazed by regulatory problems, which might surface from its application instead, Allaire thinks that a firm cordial association with regulators will count in its favor.

Allaire stated that, they have been doing a plethora of work laying the foundation for how they are gonna supervise cryptocurrency, how they are gonna counsel stablecoin issuers particularly.

Furthemore, he added that, Office of Comptroller of Currency is taking a complex approach regarding the issue.

If approved, Circle will link to 3 other federally chartered cryptocurrency banks in United States, which includes Protego Trust NA, Anchorage Digital and Paxos Trust Company. They all have received preliminary approval.

Also Read: How does the limitation of cryptocurrency deposits by the European Union on Russia impact?

Banks To Become Stablecoin Issuers?

For Circle, receiving this approval will be vital for its future. United States regulators and Federal Reserve have called for extra laws regarding stablecoins and think that banks should be issuing them.

So far, OCC and Circle have acknowledged various issues about organization’s banking aspirations as well as blockchain interoperability. This is a salient problem given the more than $1 Billion hacks including cryptocurrency bridges this year.

Allaire said that both parties have talked regarding assessment of threats associated with operations for a particular blockchain network. While OCC has denied to comment on the issue, there is still interest persisting on its part.

We will have to wait for what happens with this application submitted by Circle, and only then can we say something regarding what possible outcomes can be anticipated.