Wall Street Journal Stable Coin Special: 'The Life and Death Battle of Tether and Circle'

This is a financial war involving trillions of dollars and a confrontation of ideas and regulations. Giancarlo Devasini, who lives in seclusion in Lugano, Switzerland, and Jeremy Allaire, who travels the world lobbying, represent two futures of Cryptocurrency—Decentralization's free market or a regulated digital financial order. This article is sourced from Angus Berwick's Wall Street Journal article "The Titans Battling for Control of the Crypto Future", compiled, translated, and re-written by Luffy, Foresight News. (Background: EU MiCA approves issuance of Stable Coins by 10 institutions, but Tether's absence from USDT may face full delisting) (Background: Tether CEO: Actively assisting US lawmakers in drafting Stable Coin legislation, will not allow USDT to perish) In the alpine town of Lugano, Switzerland, the newly minted billionaire Giancarlo Devasini leads a reclusive life. He resides in a seemingly ordinary apartment by the lake, wearing a black hoodie, strolling down cobblestone streets, burning with anger towards his American competitor who he believes is trying to ruin his business. Devasini is one of the main owners of Tether, the company that issued the digital dollar USDT, an indispensable part of the Cryptocurrency industry. The core position of USDT has helped Devasini accumulate massive wealth, wield significant influence in the encryption industry, and even garnered support from a top ally of President Trump. Critics argue that USDT has become the preferred tool for criminal organizations to transfer funds globally. A formidable opponent trying to overthrow Devasini's business empire—Jeremy Allaire, whose company Circle is a direct rival of Tether, issued a Stable Coin named USDC. Allaire, a suit-wearing executive, is adept at handling situations whether it's in Davos, Wall Street, or congressional halls. He is spearheading a movement to eliminate USDT through regulation. Devasini told business partners that Circle is lobbying politicians to criticize USDT and incite law enforcement actions against Tether. In Devasini's view, Circle aims to turn this industry into another regulated corner of the financial sector, while he hopes Cryptocurrency can uphold its bold, unconventional foundation. In 2014, Tether CEO Giancarlo Devasini said to a partner in Milan, "As long as USDT exists, Circle won't win." This battle concerns the future of the $3 trillion Cryptocurrency industry. The Trump administration, which should have ushered in a golden age for the Cryptocurrency industry, announced the Cryptocurrency Strategic Reserve Plan on Sunday. However, the call to mainstream Cryptocurrency through government regulation has sparked a life-and-death battle among Cryptocurrency participants. While the laws are expected to be overall friendly to the encryption industry, they may be devastating for individual participants like USDT who are standing against the new rules. Allaire has been urging the US and other governments to enact laws banning the use of USDT Tokens issued overseas. A similar law in the EU was fully implemented last December, with the US also proposing a similar bill. USDT rightfully holds the industry leader position, with four out of every five Cryptocurrency transactions using its Stable Coin. The holding company of USDT, in which Devasini holds half the shares, reported a profit of $13 billion last year, double that of BlackRock, with profits mainly coming from a large amount of ultra-safe US government bonds it holds, which are value-supported at a 1:1 ratio with the dollar. Allaire frequently testifies in Congress, advocating for stricter regulations that would sacrifice USDT but benefit Circle. Last year, one of Allaire's top deputies urged lawmakers to target USDT, citing its use in financing terrorism. The Wall Street Journal reported in October last year that the US Department of Justice and Treasury were investigating whether USDT might be violating financial crime laws. Allaire stated in an interview, "We hope to make USDC the preferred digital dollar." Jeremy Allaire, the founder of the Cryptocurrency company Circle, in contrast, shies away from the spotlight, rarely speaking in public. The 60-year-old has been the nominal CFO of USDT, and on Monday, the company announced that he would transition to chairman. In reality, he has been running the company's operations—all while his business card reads, "Without title, without job, nothing." According to colleagues, behind the scenes, he hopes to enlist allies like US Commerce Secretary Howard Lutnick to quash hostile legislation supported by Circle; Lutnick's company Cantor Fitzgerald holds a significant reserve of USDT government bonds. After Lutnick obtained a cabinet position in the Trump administration in February this year, he resigned from his position at Cantor Fitzgerald. Both companies declined to comment directly on each other. Allaire stated that Circle is not following "the unregulated world of Coin", but the entire legitimate digital Coin market worth $100 trillion. In February this year, when a Cryptocurrency YouTube blogger asked Devasini's deputy Paolo Ardoino about Circle, he grinned and replied, "You mentioned that name, not me." USDT has repeatedly denied assisting criminals and stated that it cooperates with law enforcement agencies. Making the dollar scream Devasini, an Italian, has had a varied career path. He initially worked as a plastic surgeon in Milan, then ventured into importing electronic products in Hong Kong. In 1995, Italian prosecutors accused him of being involved in a software piracy ring, committing fraud. Devasini reached a plea protocol with the authorities and paid a settlement to Microsoft. Later, he got involved in the emerging Cryptocurrency industry and seized an opportunity about a decade ago. Cryptocurrency companies were unable to connect their digital Coin with the real-world banking system. Paolo Ardoino, one of Devasini's main deputies, often represents USDT in public appearances. Launched in 2014 and registered in the British Virgin Islands, USDT aimed to solve this problem. Traders could exchange their real-world Coin for USDT pegged to the dollar and almost instantly convert this Stable Coin into other Tokens via blockchain. In Devasini's view, USDT aims to disrupt TradFi. His wife, an artist, she...