Tether and Circle compete for the advantage in the regulatory push of the stablecoin industry
Tether and Circle represent two competitive visions for stablecoins: Tether favors the decentralized spirit of cryptocurrencies while Circle promotes regulatory acceptance.
Lawmakers have introduced multiple bills aimed at regulating stablecoins, which could force Tether to adjust its reserves if approved.
Jeremy Allaire of Circle sees digital currency as a strategic advantage for the U.S. and calls USDC "the first digital dollar of the United States." Giancarlo Devasini, who recently stepped down as CFO of Tether and is now its president, maintains a low profile in the modest Swiss city of Lugano.
Meanwhile, Circle founder Jeremy Allaire feels comfortable rubbing shoulders with politicians and Wall Street executives, Berwick continued.
The conflict has as much to do with ideology as it does with business, Berwick writes. Tether embraces the free spirit of cryptocurrencies, while Circle is pushing for widespread acceptance through regulation. “Circle does not WIN if Tether remains alive,” Devasini reportedly said months ago.
The outcome of this battle will determine the future of stablecoins. If regulators manage to marginalize Tether, Circle's USDC could gain market share and take stablecoins further into the traditional financial system.
If Tether survives, and it has shown resilience in the past after navigating concerns about its commercial paper reserves, it will reinforce the ability of cryptocurrencies to operate outside centralized influence. Either way, there is a lot at stake as crypto companies vie for dominance in an industry worth trillions of dollars.
