Circle Demands Uniform Standards for Banks and Stablecoin Issuers

Circle, a major player in the stablecoin market, has urged regulators to implement uniform standards for banks, non-banks, and stablecoin issuers. In a recent submission to the U.S. Department of the Treasury, Circle emphasized the need for clear enforcement requirements and consequences for noncompliance.

The company's comments came during the second public comment round on the GENIUS Act implementation rules, which are expected to establish a federal framework for payment stablecoins within 18 months after enactment or 120 days after regulators approve implementation rules. Circle argued that all issuers should follow identical standards regardless of entity type or location to prevent consumers from bearing risks of regulatory shortcuts.

The company's core principles include full backing with cash and high-quality liquid assets separated from company funds, redeemable at par on demand, as well as independent monthly verification with public reports. Circle warned that any digital asset designed to maintain stable value should face identical obligations regardless of marketing labels.

Circle is not alone in its concerns about regulatory clarity. Coinbase also submitted comments requesting that the Treasury limit interest payment bans to issuers while allowing cryptocurrency exchanges to offer such services. This move follows pushback from banking groups on interest-bearing stablecoins.