Circle hires former CFTC Chair Heath Tarbert as top lawyer

The appointment comes at a critical time for Circle, which oversees nearly $30 billion of the USDC stablecoin along with Coinbase, but is navigating U.S. regulatory waters that have become deeply hostile to crypto.

As a former Chairman of the Commodity Futures Trading Commission—an agency that is jockeying for a bigger role overseeing crypto markets—Tarbert is likely to provide Circle with both expertise and valuable connections in Washington, DC.

In an interview with Fortune, Tarbert described himself as a longtime digital asset enthusiast, and said he was attracted to Circle because of the company’s reputation for prudence, and because he considers USDC to be the most popular regulated stablecoin.

“There will be a convergence between the traditional financial system and blockchain technology,” he said, and predicted that stablecoins will come to be a critical element of the future payment eco-system.

According to Tarbert, the tokenization of the dollar on blockchains is inevitable, but he added the U.S. still needs a model for government-supported stablecoins that permits innovation and that doesn’t permit Chinese-style currency surveillance.

In pushing for a regulatory framework for stablecoins, Tarbert and Circle may have their work cut out for them. Recent attempts to push forward crypto legislation in Congress have stalled due in large part to the fallout from the FTX scandal, which saw investors loses billions and hundreds of politicians having to give back campaign contributions they received from the company’s disgraced founder.

Tarbert, however, expressed confidence that Congress will pass a crypto law so long as its focus is limited to stablecoins. He cited a stablecoin bill currently under debate, pointing out that it is only 15 pages—versus more comprehensive proposed legislation that runs over 100 pages—and noting that lawmakers are more keen to move on stablecoins given the geo-political landscape. In particular, Tarbert said national security hawks are watching digital money initiatives in other countries, and want to ensure the U.S. dollar does not lose ground.

Meanwhile, Circle’s founder and CEO, Jeremy Allaire, touted Tarbert’s financial expertise and leadership in a statement.

“As we continue building a bridge between traditional finance and Web3, Heath’s perspective, legal acumen and global regulatory experience will help us advance the utility value of USDC worldwide,” said Allaire.