According to Jeremy Allaire, founder and CEO of Circle, the United States Securities and Exchange Commission is not the right institution to oversee stablecoins.

The CEO of Circle provided his thoughts on the SEC and its recent actions to crack down on the cryptocurrency industry, including the issuer of the stablecoin Paxos, in a February 24 interview with Bloomberg.

Allaire appears to have taken issue with the SEC’s emphasis on stablecoins, stating that dollar-pegged “payment stablecoins” should be subject to oversight by a banking authority rather than the SEC. This seems to be the case.

“I don’t think the SEC is the regulator of stablecoins,” Allaire said, adding: “There’s a reason that around the world, including the US, the government specifically says that payment stablecoins are a payment system and banking regulatory activity. “I don’t think the SEC is the regulator of stablecoins.”

Following Wells’ delivery of a notice to Paxos, which is the issuer of Binance USD (BUSD), Circle claimed last week that it had not been the subject of an SEC investigation.

“There are many varieties, as we like to say, not all stablecoins are created equal,” Allaire stated. He went on to say: “But obviously from a policy standpoint, the consistent position around the world is that this is a payment system, an area of ​​prudential regulation.”

However, the CEO of Circle said that he was generally supportive of a recent proposal made by the SEC regarding the custody of cryptocurrencies. This plan would make it much more difficult for exchanges to become custodians.

We believe that having competent custodians who can provide the proper control structures, as well as bankruptcy protection and other things, is a crucial and very useful component of the market system.

USD Coin, issued by Circle, is the second largest stablecoin in circulation worldwide (USDC). Its market share is 31% thanks to its circulating offer of 42,200 million dollars, which gives it that percentage. According to CoinGecko data, Tie It remains the most popular stablecoin, with a supply of $70.6 billion and a market share of 52%.

On February 23, Allaire agreed with SEC Commissioner Hester Peirce’s statement that the agency should consult with Congress. Some people argue that the Securities and Exchange Commission (SEC) has been taking matters of cryptographic standards and enforcement into their own hands due to the absence of laws in this area.

According to the article, Circle plans to increase its staff by up to 25 percent, bucking the typical trend of layoffs in the cryptocurrency industry.