Boston-based Circle has announced its ambitious plans to obtain all possible licenses from US regulators.
Circle plans to start by obtaining a license from the US Securities and Exchange Commission (SEC) as a brokerage and trading platform. Such registration will enable the site to legally trade crypto-assets that qualify as securities in the United States, and will also free it from the need to register in each of the 50 states separately. According to Jeremy Allair, CEO of Circle, “It’s easier to have one conversation than 50.”
The next step is to obtain a US federal banking license. Holding assets with the Federal Reserve will enable the company to work directly with banks in all global markets through banking networks. In addition, storing client assets in any currency will not require approval of activities in each state and will significantly increase user confidence.
The company has already held a number of negotiations with US regulators and built a sequence of actions, deciding that the SEC license will be the first permitting document.
In addition, the head of the startup is confident that cooperation will be mutually beneficial for both parties. Circle agrees to act as a “guinea pig” for the creation of legislation and completion of work on the regulatory framework for the crypto industry. Such questions are especially relevant today, amid the desire of more and more Wall Street giants to enter the cryptocurrency market.
Circle is engaged in cryptocurrency trading and everything connected with it. The company's subsidiary, Circle Trade, is one of the largest over-the-counter cryptocurrency platforms in the United States. It carries out an impressive number of cryptocurrency transactions worth $2 billion per month. Moreover, the minimum size of transactions is $250 thousand.
In March of this year, the company acquired one of the largest exchanges in North America Poloniex, immediately after that it announced entry into the Asian cryptocurrency market, launched the Circle application Invest, and in May raised 110 million to issue a dollar-backed USD-C token. It looks like Circle is moving towards its goal of reaching customers with the widest possible range of digital services by leaps and bounds.. And the company will be able to achieve official status from US regulators, doing something that no other startup has ever managed.
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