Circle Supports Tougher Stablecoin Regulation, Backs GENIUS Act Framework In Letter To OCC

• Circle backed strict stablecoin rules in a letter on Tuesday to the Office of the Comptroller of the Currency under the GENIUS Act framework.
• The USDC stablecoin issuer agreed that only licensed entities should issue stablecoins, aligning the sector with traditional financial oversight.
• The firm called for full redeemability and uniform rules, positioning the U.S. dollar as a global benchmark.

Circle (CRCL) submitted a comment letter to the Office of the Comptroller of the Currency (OCC) on Tuesday, supporting a stricter regulatory approach for stablecoins under upcoming US digital asset rules.

Circle backed the OCC’s proposed prudential and licensing regime, describing it as a “momentous turning point” for dollar-backed digital assets and a key step toward building a regulated payments framework.

The USDC (USDC) stablecoin issuer supported a model where only licensed entities, including banks and approved non-bank institutions, can issue payment stablecoins, aligning the sector more closely with traditional financial oversight.

US Stablecoin Rules Take Shape Under GENIUS Act

The proposal is tied to the GENIUS Act, passed in July last year, which seeks to establish a federal framework for payment stablecoins in the U.S. Implementation has been gradual, with rulemaking still underway.

Lawmakers are also advancing the broader CLARITY Act, which aims to define oversight across digital asset markets. The markup for the CLARITY Act has been delayed over the past few months, though discussions are ongoing.

Circle’s stock was down by 0.98% during mid-day trading hours. On Stocktwits, the retail sentiment around CRCL moved to ‘extremely bullish’ from ‘neutral’ zone, as chatter around it moved to ‘extremely high’ from ‘high’ levels over the past day. 

Circle Pushes For Uniform Global Stablecoin Standards

Circle underlined the need for a uniform regulatory framework across all issuers, including banks, non-banks, and foreign entities, saying consistent standards would reduce regulatory gaps and position the US dollar as a global benchmark.

The firm called for strong redemption guarantees, stating that stablecoins must be “fully redeemable, at par, at all times.” The firm also warned against fragmentation, adding that payment stablecoins should function as a single interoperable instrument.

Circle urged regulators to distinguish payment stablecoins from tokenized bank deposits, noting that the two “serve distinct purposes.” It also supported strict risk controls, including liquidity, operational resilience, anti-money laundering, and credit risk requirements.

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