Circle CEO Jeremy Allaire said USDC remains fully backed by cash and short-term U.S. Treasuries, reiterating the company’s claim that every token is supported by corresponding reserves. He also said the firm continues to publish regular attestations and audits as it works under increased scrutiny from regulators and lawmakers.

The comments come as Washington moves closer to setting clearer rules for stablecoins, a corner of the crypto market that has grown into a key part of digital payments and trading. Supporters of the legislation argue that stronger standards could improve transparency and reduce risks for consumers and financial markets.

Circle has long positioned USDC as a more regulated alternative to other digital tokens, emphasizing reserve quality and disclosure. Allaire’s remarks were aimed at reinforcing that message at a time when lawmakers are debating how issuers should be supervised, what assets should back tokens, and how often disclosures should be made.

As policy discussions continue, the pressure on stablecoin issuers is likely to rise. For Circle, the focus now is not just on maintaining the peg, but on convincing regulators and users that its reserves, reporting, and governance can withstand closer public scrutiny.