Circle CEO Jeremy Allaire has warned that the US dollar's position as a global reserve currency could be threatened if Congress does not regulate stablecoins quickly. Allaire made the comments in a video targeted at lawmakers as bipartisan digital asset-specific legislation was reintroduced to Congress.

He argued that competition for what money is used on the internet is increasing and that the US has a choice to make about whether it wants dollars to be the foundation of currency on the internet or if it will let other countries lead the way.

Crypto investment firm Galaxy Digital founder Mike Novogratz also called for the development of well-regulated stablecoins.