One of the largest cryptocurrency giants, Circle, is recently in talks with US regulators about pursuing a federal banking license that will transform the cryptocurrency company into a securities exchange.
The CEO of Circle, Jeremy Allaire, has revealed the company’s plans and intentions during a recent interview with Bloomberg. He said that they all hope to make Circle the first cryptocurrency startup that will receive such licensure at the federal level.
As Allaire stated:
“To hold reserves with the Federal Reserve, to natively access the central-banking system without intermediaries, to directly settle with other banks in other markets around the world through those networks — that can improve the efficiency of what we deliver, it can reduce the costs,”
He also added:
“The regulators need to figure this out because eventually other banks that they regulate are going to want to hold crypto,” he added. “They’re going to need to have rules for this. We can be a great guinea pig.”
Right now, every company that handles cryptocurrency transactions in the US is primary regulated as a money transmitter business. As such, it should comply with 50 different sets of regulations and prevent them from operating in many states.
Meanwhile, the Goldman Sachs-backed Circle recently concluded a $110 million funding round and raised its valuation to $3 billion. Aside from Circle, Coinbase has also reportedly approached regulators about pursuing federal banking licenses.
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