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Circle CEO Flags Risk Of USD Exposed To US Banks


Crypto News: Jeremy Allaire, Co-founder and CEO of Circle on Thursday, flagged off risk building around USD after the Silicon Valley Bank and other banks collapsed. This comes after Circle’s $3.3 billion of funds exposed to SVB were shifted out.

Circle CEO Warns Off Risks Ahead

Circle CEO mentioned that after analysis, they saw lots of color and perspective from the market. There seems to be large scale risk off from USD exposure to US banks, however, it also involves US regulatory risk. He added that deep market anxiety is generated around exposure to the US financial system keeping aggressive regulatory actions taken against crypto and erupting banking crisis.

At this time, the players who used to have the strongest spot with US regulations and entire banking system integration are now being considered as “un-safe”, he added. While fear is building around the assets which might be stranded in the institution. Read More Crypto News Here…

Also Read: Banks Under Pressure As Markets Brace For Hindenburg Research Another “Big Target”

Need Better Policies

Circle boss stated that the policymakers need to calculate carefully about what would happen ahead. He claimed that the market participants are shifting to platforms that have no oversight. These platforms are totally opaque and exposed to multiple risks.

Jeremy Allaire mentioned that over the past 10 years, he hasn’t seen such a situation where there is an urgent need for pragmatic policy. He speculated that there is a serious risk of seeing an entire strategic technology arena slip from the United States.

Circle’s USDC, a stablecoin is the fifth largest crypto asset with a market capitalization of $34.6 billion. Circle CEO brought up that USDC has never failed to mint or redeem USDC for $1. This remained the same at the time of crisis.

Also Read: Banks Under Pressure As Markets Brace For Hindenburg Research Another “Big Target”



Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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