Wed Sep 25 07:05:02 UTC 2024: ## Crypto Co-founder Calls for Tighter Regulation to Curb Fraud and Volatility
**Paris, France** – Jeremy Allaire, co-founder of Circle, a leading cryptocurrency firm, has called for stricter regulation of the crypto sector to combat fraud and excessive volatility. Allaire, whose company issues the popular USDC stablecoin, argues that the industry owes it to society to adopt safeguards, similar to those imposed on other emerging technologies like artificial intelligence.
“We have social objectives that we have to match against the technology,” Allaire stated during a visit to Circle’s European headquarters in Paris. He emphasized the need for regulation to ensure responsible development and prevent misuse, comparing the potential risks of crypto to those posed by AI and advanced weaponry.
Allaire’s call for tighter regulation comes amidst growing concerns about the crypto industry’s vulnerabilities. Recent years have witnessed a surge in fraudulent activity, including the collapse of prominent exchange platforms like FTX.
Despite a decrease in illicit activities in the first half of 2024, ransomware attacks continue to plague the sector, with $460 million paid out in the first six months. Allaire acknowledged the potential for abuse within the industry, pointing out that “some have been using the technology to do things outside of any kind of supervision.”
However, he remains optimistic about the future of crypto, arguing that regulation is not a threat to the technology itself but rather a means of protecting users and fostering responsible growth.
Global regulators are taking note. Last year, the European Union adopted the Markets in Crypto-Assets (MiCA) framework, which requires mandatory approval for digital asset service providers. Circle was the first stablecoin issuer to comply with these new regulations.
In the United States, the Financial Innovation and Technology for the 21st Century Act was passed by the House of Representatives, outlining a framework for regulating the crypto market.
Allaire believes that Circle, with its focus on developing a “digital dollar” and its new headquarters in New York City, is well-positioned to play a key role in the future of the crypto industry. He emphasizes the need for collaboration between developers, regulators, and policymakers to ensure a secure and ethical future for cryptocurrency.
First Piper 