A recent Wall Street Journal article explored the contrasting leadership styles of Tether’s Giancarlo Devasini and Circle’s Jeremy Allaire, highlighting the ongoing battle for dominance in the stablecoin industry.
Having recently transitioned from his longtime role as Tether’s CFO to chairman, Devasini maintains a low profile in Lugano, Switzerland. In contrast, Circle’s founder, Jeremy Allaire, is known for his active engagement with politicians and Wall Street executives, underscoring the divergent approaches of the two stablecoin giants.
According to journalist Angus Berwick, the rivalry between Tether and Circle is not just a business competition but also an ideological clash. Tether embodies the decentralized ethos of the crypto space, while Circle is pushing for broader regulatory integration. “Circle will not win if Tether is alive,” Devasini reportedly stated months ago, signaling the intensity of the competition.
The outcome of this power struggle could shape the future of stablecoins. If regulators succeed in curbing Tether’s influence, Circle’s USDC could see greater adoption within the traditional financial system. However, if Tether weathers regulatory scrutiny as it has in the past—despite concerns about its commercial paper reserves—it would reinforce crypto’s ability to operate independently of centralized control. Regardless of the outcome, the stakes remain high as the trillion-dollar stablecoin industry continues to evolve.
Regulatory Landscape: The Latest Developments
Lawmakers have introduced three bills aimed at stablecoin regulation: the Senate’s GENIUS Act, the House’s Republican-led STABLE Act, and a bill crafted over the years by Representative Maxine Waters and former Representative Patrick McHenry. These legislative efforts seek to impose reserve and reporting requirements on stablecoin issuers, potentially forcing Tether to adjust its reserves should any of the bills become law. However, all three proposals are still in early stages, leaving the timeline for regulatory action uncertain.
Allaire’s Vision: A ‘Technology Superpower Dollar’
Jeremy Allaire has been vocal about the potential of digital currencies, referring to them as a “technology superpower dollar” that could bolster the United States’ global economic position. Speaking on Fox’s “Mornings with Maria,” he emphasized the competitive race between the U.S. and China to determine which economic and currency systems will prevail in the digital age.
“This is a technology superpower dollar that expands the role of the United States around the world,” Allaire said, pointing out the potential cost savings for households and businesses by reducing credit card fees and remittance costs.
Describing USDC as “America’s first digital dollar,” Allaire highlighted its backing by U.S. Treasury bills, repos, and cash. He noted that USDC has powered trillions of dollars in transactions, surpassing $1 trillion per month, and has experienced 100% growth over the past year.
As regulatory discussions unfold, the rivalry between Tether and Circle will likely intensify, shaping the future of stablecoins and their role in the global financial system.
