Bitcoin Price Drops Further As Circle CEO Says ‘Core’ Crypto Assets ‘Undervalued’

Circle CEO Jeremy Allaire has said he believes “core” cryptocurrency assets are undervalued as the Bitcoin price tumbles closer to $3500. Allaire: ‘Markets Are Oversold’ In a Reddit ‘Ask Me Anything’ session January 10, Allaire, whose company famously decoupled itself from Bitcoin in 2016, also forecast less correlated trading in altcoin markets. “My general perception is that the markets have been oversold and that some core assets have decoupled from their usage, which suggests they

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Circle CEO Says More Regulatory Clarity From US SEC Will Help Unlock Crypto Markets

The CEO of Circle says the biggest regulatory hurdle facing the industry today is the lack of clarity over crypto and securities laws.

CEO and co-founder of Goldman Sachs-backed crypto finance company Circle has said the biggest regulatory hurdle facing crypto today is the lack of clarity from the United States securities regulator over how to define various crypto assets.

Jeremy Allaire made his remarks in an AMA reddit thread he initiated on Jan. 10 together with Circle co-founder Sean Neville and other representatives from the firm.

In response to a question over Circle’s efforts to educate regulators like the Securities and Exchange Commission (SEC) about the crypto industry, as well as specific challenges the company faces, Allaire wrote:

“The biggest and most immediate regulatory hurdle we face is the lack of specific guidance from the SEC on how to classify various crypto assets. We believe many are clearly currencies and commodities, and there needs to be more specificity on what are really securities. This can unlock a lot of market activity, and also clearly enable the growth of a market for crypto-based securities.”

In response to other regulation-focused questions, Allaire also stated Circle’s belief that tax treatment should be differentiated for crypto-to-crypto transactions — noting that France has inched ahead of other countries in pursuing a statutory amendment to this end.

As reported, France’s prospective bill to ease crypto-crypto taxation has notably recently faced a setback in parliament.

Other topics that gained traction on the thread were discussions of privacy-focused altcoins such as Monero (XMR), with many redditors keen to get insights into Circle’s approach to handling scrutiny from regulators and law enforcement into so-dubbed opaque blockchains.

Robert Bench, chief compliance officer and head regulatory counsel for Circle, clarified that while no specific legislation has yet been drafted in the U.S. in regard to privacy coins, Circle may take use of such assets into account for its customers’ risk assessments.

Noting that tackling privacy and Anti-Money Laundering (AML) compliance is high on regulators’ agenda, he added that he “wouldn’t underestimate the ability of smart industry and government participants to find solutions to provide transparency on these coins [in the future].”

As reported, Allaire has recently predicted that Bitcoin (BTC) will eventually be worth a great deal more than now, but stopped short of Bitcoin maximalism, stating:

“I do not think it’s winner-take-all. We have the phrase ‘the tokenization of everything,’ and we think cryptographic tokens are going to represent every form of financial asset in the world. There will be millions of them in years.”

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Circle Acquires Crowdfunding Platform and Broker-Dealer SeedInvest

Crypto finance company Circle has acquired equity crowdfunding platform and broker-dealer SeedInvest.

Cryptocurrency finance company Circle Internet Financial Ltd. has acquired equity crowdfunding platform and broker-dealer SeedInvest, according to an announcement published October 5. Exact terms of the transaction were not disclosed.

New York-based SeedInvest was founded in 2012 as a startup investing platform. Since then, the company has reportedly raised capital for 220 firms through more than 240,000 investors. The average investment per company through SeedInvest is said to be $500,000, while the largest investment was$2,000,000.

Once the acquisition is approved by the Financial Industry Regulatory Authority (FINRA), it will reportedly enable Circle to expand SeedInvest’s offerings to support cryptocurrencies, including fiat stablecoins and issuing and offering tokenized securities.

Additionally, companies will reportedly be able to raise capital through a regulated platform, get access to retail investor portfolios via Circle Invest, and provide investors with secondary market liquidity on Circle’s cryptocurrency exchange. Circle CEO Jeremy Allaire told Bloomberg in an interview:

“This was a company who had been at the forefront of collaborating with government to figure out how to make it possible to innovate in the way people raise capital. Crypto securities are going to become a major new category of securities that ultimately every business is going to adopt, just like every business has a website.”

Earlier this week, Circle launched a new feature for its crypto investment app Circle Invest dubbed “Collections,” that gives customers the option to invest in one or more collections of crypto assets, each divided according to a particular theme: “Platforms, Payments, and Privacy.”  After choosing a collection category, users can invest in the entire category in one swoop.

In September, Circle launched a USD-backed digital token dubbed the “USD Coin (USDC).” Per Circle, over 20 companies are about to announce support for USDC, while others might add trading through the open ERC-20 standard.

Circle was founded in 2013 by investment banking and management giant Goldman Sachs. The company offers four products including Circle Pay, which is a fiat money sending service with a social messaging component, and Circle Trade, which is a liquidity provider of cryptocurrencies and reportedly moves over $2 billion each month.

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Circle Raises $110 Mln In Investment Round, Plans To Release Fiat-Based Stable Coin

Circle and Bitmain’s cooperation has resulted in a $110 mln investment round and the planned development of a fiat-based stable coin, which will reportedly be released this summer

Boston-based Circle Internet Financial Ltd., a digital currency products developer, has closed a $110 mln fundraising round led by mining hardware manufacturer Bitmain, Bloomberg reports May 15. The two companies are now partners in a project to create a token which is backed by US dollars.

The investment lifts Circle’s valuation to nearly $3 bln, which is more than six times what it was in 2016. The partnership between Bitmain and Circle has also resulted in plans to develop a fiat-backed token or “stable coin”, which aims to address the unstable nature of some cryptocurrencies. The project is called Circle USD Coin, or USDC, and will reportedly be released by Circle in the summer.

USDC will be an ERC-20 token based on the Ethereum network. It will be backed one-to-one with the dollar and is lauded by supporters to carry many of the benefits of cryptocurrencies, without the risk of volatility. Circle CEO Jeremy Allaire said in an interview at an industry conference Monday, that the token will also provide greater transparency. He added:

“It’s a version of fiat that can move at the speed of the Internet with global reach, with much less cost, with high levels of security. It’s a huge improvement for how fiat money transmission can work around the world for consumers and for businesses who might want to collect digital payment with tokens.”

Circle, which has 7 mln users, is looking to integrate USDC in its Circle Pay payment app and in Circle Trade, a crypto OTC desk and liquidity provider. The company also plans to offer USDC on its cryptocurrency exchange Poloniex. Co-founder Sean Neville said that Circle hasn’t yet decided whether it will charge fees for traders using USDC, as the objective is to increase its circulation.

Fiat collateralized stable coins like USDC are the easiest type of stable coin to implement, as they function much like an IOU. Every token is paired with an equal amount of fiat currency, which is held by a central custodian. Holders are then able to redeem their coins for the stable value denominated in fiat.

In general, stable coins aim to carry both the relative price stability of fiat currencies, and keep the core values of cryptocurrencies such as decentralization and security. For truly decentralized stable coins to work, there must also be a system in place that can reliably obtain the exchange rate between the stable coin and the pegged asset, without leaning on third-party institutions that can be manipulated.

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