Stablecoin issuer Circle has appointed Heath Tarbert as its new Chief Legal Officer and Head of Corporate Affairs, in a bid to strengthen its defenses against regulatory crackdowns on crypto. Tarbert, a former attorney with a background in all three branches of the United States government, will take up the role by July 1, replacing Flavia Naves, who is reportedly planning to leave the company.
Tarbert’s expertise and experience working across key regulatory agencies such as the Commodity Futures Trading Commission (CFTC), the International Organization of Securities Commissions, the U.S. Treasury, the Financial Stability Board, and the World Bank Group will be a valuable asset to Circle. Previously, he served as special counsel to the U.S. Senate Committee on Banking, Housing, and Urban Affairs. Most recently, Tarbert was the Chief Legal Officer at Citadel Securities, where he oversaw global legal, compliance, surveillance, and regulatory affairs.
Circle CEO, Jeremy Allaire, said Tarbert’s appointment is an “extraordinary step” in the company’s growth as a global entity. The move comes amid renewed regulatory uncertainty around cryptocurrency in the United States, as evidenced by the recent Securities and Exchange Commission (SEC) lawsuit against leading cryptocurrency exchanges Coinbase and Binance on various charges.
Since the FTX debacle last November, the entire crypto industry has faced regulatory scrutiny, hurting businesses and driving capital abroad. In a recent interview with Bloomberg, Allaire lamented the impact of the crackdown by U.S. regulators on the market capitalization of Circle’s stablecoin USD Coin (USDC). Over the past 12 months, USDC’s stablecoin market share has dropped from 34.88% to 23.05%, while Tether (USDT) has seen its market share grow from 47.04% to 65.89% over the same period.
The changing regulatory landscape has created a hostile environment for crypto businesses in the United States, forcing companies to seek opportunities elsewhere. It has also highlighted the need for crypto firms to have robust legal teams in place to help navigate the complex regulatory landscape and stay ahead of shifting laws and regulations.
The appointment of Tarbert at Circle is an indication of the company’s commitment to strengthening its legal team as it looks to expand its operations and grow its business globally. Tarbert’s experience working across key regulatory agencies will be an asset to Circle as it navigates the regulatory landscape, with a focus on ensuring compliance with regulations and improving transparency within the crypto industry.
The move is also an indication of the growing importance of stablecoins in the crypto ecosystem, as investors look for less volatile alternatives to traditional cryptocurrencies. Stablecoins are digital currencies that are pegged to established currencies such as the US dollar, euro, or yen, reducing the impact of price volatility and ensuring stability. As a result, stablecoins have become increasingly popular with investors, with USD Coin, Tether, and Dai leading the pack.
In addition to the appointment of Tarbert, Circle has also recently announced new partnerships and initiatives aimed at boosting the adoption of its stablecoin and expanding its operations. The company recently partnered with Mastercard to launch a new crypto rewards credit card that allows users to earn rewards in the form of USD Coin. Circle has also announced the expansion of its business into Asia, with plans to open a new office in Singapore to serve as a hub for its operations in the region.
Overall, the appointment of Tarbert represents a significant step forward for Circle as it looks to solidify its position in the fast-growing stablecoin market and navigate the complex regulatory environment. As the crypto industry continues to grow and evolve, it is clear that having a strong legal team in place is critical to success and sustainability in this dynamic and rapidly changing market.
