Circle clarifies USDC freeze policy after Drift exploit, urges passage of GENIUS and CLARITY Acts
Crypto Briefing
Circle defends its refusal to freeze stolen USDC during the Drift Protocol exploit, citing a lack of clear legislative authority.Summary
Following criticism for not freezing $230 million in stolen USDC during the $285 million Drift Protocol exploit, Circle clarified that it only freezes assets under formal legal compulsion. The company argues that it lacks the authority to act unilaterally and is urging Congress to pass the GENIUS and CLARITY Acts. These bills aim to establish a federal framework for stablecoins, which Circle believes would provide the necessary legal guidance to manage such situations. However, the proposed legislation includes provisions that could restrict interest payments on reserves, potentially impacting Circle's profitability and the broader stablecoin business model.
(Source：Crypto Briefing)