Circle Allaire：Clarity法案未过但稳定币联邦法1月生效

You said last month that the remaining Clarity Act is very much resolvable. What changed? And was the fight over stablecoin rewards ultimately the issue that made us nonpassable? I mean, look. A a couple of quick things. I mean, a failed cloture vote is not that legislation is done. I think, you know, the genius act failed cloture vote as well and then went on to pass. And I think, you know, you you see a lot of interest across industry, across both sides of the aisle who who wanna get this done.

And so I I think, the reaction of the this is over, etcetera. I just don't buy it. I that's not how politics works, and and, and people continue to work on things, and I and I think they will. So that's that's my kind of top line on that. Jeremy, I'd love to hear your thoughts just on the addressable market for stablecoin usage. I mean, how would you define that? What's the size of it? I mean, obviously, you know, I've seen people look at m two US money supplies, the $23,000,000,000,000 addressable Talk to us a little bit about the future of Circle, about the stablecoin market in general.

Yeah. I mean, I think, the the first thing to note is that, you know, we we now have we actually have settled law. We have federal law, the Genius Act, which goes into effect in January. And as of January, digital dollars like USDC will be legal electronic money in The US financial system and therefore in the global financial system, and they will be able to be used by banks, in capital markets, by payments firms, by corporations.

Public companies will be able to use these like cash. And so and they have an incredible technological utility, and that technological utility continues to expand dramatically, including with, like, our new operating system, ARC, which which launches today. But the the core of this is that we now have this new form of a very safe, full reserve, digital currency money, and it will expand its use as the Internet, consumes more utility, as well.

And so when we think about the TAM, they're sort of the existing TAM of essentially, you know, non interest bearing cash and demand deposits that exist in in money in the world today. That's about $60,000,000,000,000. And then there's all the utility for the use of that money. And I think, like other past Internet paradigms, when Internet infrastructure emerged that kind of, drove the cost of of doing things down to zero, the velocity of those things increased extraordinarily large.

And so our belief is that the transactional volume, the money velocity, and the utility of money will will will continue on an exponential curve primarily driven by these new very safe digital dollars. And so the TAM in terms of utility, we think, is much larger than the existing financial system. And then the TAM in terms of the monetary base and monetary supply, that is, you know, ultimately macro driven as well. But I think, this form of digital cash will be quite attractive and substitutional for other forms of electronic money that we have today.

Before we get to your new blockchain called ARC, actually, congratulations on that. I wanna stick a little bit with the Clarity Act. So if Congress doesn't give you the market structure bill that you're looking for, does that change Circle's strategy at all? Well, first of all, the most important legislation that we care about is federal law for stablecoins, and we passed that with broad bipartisan support last year.

The Genius Act is now the rules are made aid by the Fed, by the OCC, by the major regulators. They're going into force in January. We have a national trust bank, Circle National Trust, which is gonna be a key part of the infrastructure of USDC. And so we will be in a incredible position to provide this technology, provide the actual digital dollars, and to service financial companies, corporations all around the world.

So we don't need the Clarity Act for that. We have the law that we need to scale that part of our business. Now we do obviously care about, the development of trading markets and futures markets and, you know, there's a whole bunch of stuff that ultimately making sure things like DeFi can continue to grow and thrive. And I I think I share, I share Brian Armstrong's view on this, which is that, a, industry is just gonna continue to execute as they have.

The technology improvements are extraordinary. The velocity of that is extraordinary. And b, regulatory agencies have an incredible amount of capability to make sure that the rules are there. And I think over the next, period of time, you're just gonna see that deepen and harden and much broader financial market participation. This is an irreversible trend. It's accelerating. This is the best technology in the world for the future of the financial system, so that will move forward.

And, whether we have, settled federal law in the next month, two months, three months, six months, or two years, this is an irreversible megatrend that is gonna completely reshape the financial system.