Circle responds to Drift theft incident: USDC freeze must be carried out in accordance with the law, calling for accelerated cryptocurrency legislation and improved security mechanisms

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ChainCatcher News, Circle Chief Strategy Officer Dante Disparte issued a statement in response to the Drift Protocol theft of over $270 million. Disparte stated that Circle’s freezing of USDC is only carried out when legally compelled and not a unilateral decision, and this is not a backdoor or algorithmic monitoring. This reflects the rule of law in internet-native financial activities.

He pointed out that the core issue faced by open systems is that the legal framework’s response speed lags behind technological development. Protocols, wallets, exchanges, and stablecoin issuers should regard security and accountability as shared responsibilities. DeFi protocols can refer to traditional market circuit breaker mechanisms to develop on-chain technical safeguards.

He also called for the legislative process of the U.S. GENIUS Act and CLARITY Act to incorporate standards for due process, property rights, and financial privacy protections before the next major security incident occurs.

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