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During his keynote address at a conference in South Korea, 
Circle CEO Jeremy Allaire upheld his firm's decision to only freeze its USDC stablecoins at the request of law enforcement or court orders.
What's the Scoop?
- Legal Orders Only: Speaking at the "Circle in Seoul" conference, Jeremy Allaire said Circle will only freeze USDC wallets when directed by law enforcement or courts, refusing to act unilaterally (currently).
- Drift Backlash: Pleas for the USDC issuer to respond to the $280M Drift hack earlier this month went unanswered, a decision Circle's Allaire claims was the appropriate choice, warning that allowing companies to decide when to intervene creates a dangerous "moral quandary" to act beyond the rule of law.
- Proposed Solutions: Allaire continues that Circle is working with U.S. authorities and lawmakers developing the CLARITY Act to include liability "safe harbors" for stablecoin issuers like Circle, which would preclude them from legal liability when taking preventive actions under certain circumstances.
What's the Take?
On one hand, Allaire is right to resist becoming an extralegal enforcer; a world where stablecoin issuers freeze funds based on social pressure is inherently unstable.
On the other, the push for “safe harbors” raises significant concern. Circle already operates as a FinCEN-registered Money Services Business, a designation which requires it to have in-place controls designed to prevent money laundering and provides it with the unilateral discretion needed to freeze funds. Further expanding those authorities while insulating stablecoin issuers from liability looks less like restraint and more like an attempt to avoid accountability.
Circle in Seoul brings together builders, institutions, and leaders from across Korea’s digital asset ecosystem to talk about the future of the internet financial system.
— Circle (@circle) April 12, 2026
Featuring a keynote from @jerallaire on digital dollars, internet-native finance, and Korea’s role in this… pic.twitter.com/68IiQjyZkv
