Circle CEO Defends USDC Freeze Policy Amid Criticism
- Circle Internet CEO Jeremy Allaire emphasized that USDC freezes occur only with a formal legal mandate.
- The company views USDC as a regulated financial product, not for discretionary intervention during exploits.
- Criticism arose after the Drift Protocol exploit resulted in losses of $285 million, including $230 million in USDC.
- Onchain investigator ZachXBT claims Circle’s delay in freezing wallets has led to over $420 million in illicit USDC flows since 2022.
- Circle is advocating for the GENIUS Act and CLARITY Act for clearer stablecoin regulation frameworks.
Circle’s stance on freezing USDC assets only under legal compulsion follows criticism post-Drift Protocol exploit, underscoring the need for regulatory clarity.
Source (3.2)https://cryptobriefing.com/usdc-freeze-policy-controversy/?rand=59535
