Circle CEO Predicts Imminent US Executive Orders to Expand Digital Asset Adoption

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Circle CEO Jeremy Allaire has expressed confidence that US President Donald Trump will soon issue executive orders aimed at significantly widening the role of digital assets in the nation’s financial system. The anticipated directives are expected to enable banks to engage with digital assets more freely, offer investment products to wealthy clients, and incorporate these assets into institutional portfolios.

Circle, the issuer of the USDC stablecoin, stands to benefit from a more favourable regulatory landscape. USDC, which is pegged to the US dollar, remains a pivotal player in the stablecoin market, currently ranking as the eighth-largest digital asset by market value. Allaire has been vocal about the need to repeal the Securities and Exchange Commission’s (SEC) Staff Accounting Bulletin 121, which he argues deters banks and financial institutions from holding digital assets due to restrictive accounting practices.

Current Market Share of US Dollar-Backed Stablecoins

As of January 2025, the total market capitalisation of USD-backed stablecoins stands at approximately $210 billion. Tether’s USDT dominates the sector, accounting for roughly two-thirds of the market share. Circle’s USDC holds a significant portion, benefiting from its strong partnerships and compliance reputation. Other notable players include Binance USD (BUSD), Dai (DAI), and more recent entrants like Ripple’s RLUSD and PayPal USD (PYUSD), which are helping to reshape the competitive landscape.

Ripple’s RLUSD stablecoin has emerged as a noteworthy contender, designed for efficient cross-border transactions and gaining traction in pilot programmes with financial institutions. Ripple’s success highlights the potential for stablecoins to enhance interoperability between traditional financial systems and blockchain technology.

PayPal USD, introduced by the payments giant PayPal, represents another significant development in the market. Leveraging PayPal’s established user base and payments infrastructure, PYUSD aims to integrate stablecoins seamlessly into consumer and business transactions, further expanding the adoption of digital assets. As one of the few stablecoins directly linked to a major global payment platform, PYUSD holds the potential to accelerate mainstream use of USD-backed digital assets.

A Changing of the Guard?

In a surprising move, Tether, the issuer of USDT, recently announced plans to relocate its headquarters to El Salvador after securing a Digital Asset Service Provider (DASP) licence in the country. Tether’s CEO, Paolo Ardoino, described the relocation as a “natural progression” that aligns the company with a nation embracing blockchain technology and offering a more favourable regulatory environment. While Tether has reaffirmed its commitment to the US dollar-backed stablecoin market, its decision to shift operations to a more supportive jurisdiction raises questions about the long-term dominance of USDT in this space.

El Salvador’s President Nayib Bukele has welcomed Tether’s move, underscoring the nation’s ambition to become a global hub for digital assets. However, Tether’s relocation could signal cracks in its traditional stronghold, potentially opening the door for other players, such as Circle’s USDC, Ripple’s RLUSD, and PayPal USD, to capture market share. As regulatory clarity emerges in the United States, will this mark the beginning of a change in leadership among US dollar-backed stablecoins?

Executive Orders and Legislative Action

The expected executive orders align with President Trump’s stated commitment to fostering innovation in the digital asset sector. Reports suggest the administration is preparing to dismantle regulatory barriers that have hindered firms in this space, with potential measures including directives for the SEC to withdraw costly accounting rules and the establishment of a dedicated digital asset advisory council to guide policymaking.

In tandem with these actions, Allaire predicts an increase in legislative activity. Congressional committees are expected to commence discussions on digital asset regulations in the coming weeks, reflecting a broader move towards integrating digital assets into the US financial system.

Industry Optimism and Future Outlook

These developments come as the digital asset industry celebrates a perceived shift towards a more supportive regulatory environment. Many industry leaders are optimistic that these policy changes will not only drive growth but also integrate digital assets more seamlessly into mainstream financial systems. The combination of executive actions and legislative engagement signals a transformative period for the market, with stablecoins like USDC, USDT, RLUSD, and PYUSD poised to play central roles in the future of finance.

Tether’s relocation to El Salvador introduces an element of uncertainty, but it also reflects the dynamic nature of the market. Whether this move signals the beginning of a new era for USD-backed stablecoins or simply reinforces Tether’s adaptability remains to be seen. Meanwhile, Ripple’s RLUSD, PayPal’s PYUSD, and Circle’s USDC are well-positioned to capitalise on any shifts in the competitive landscape, underscoring the ongoing evolution of the stablecoin market.

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