Circle Urges “Same Activity, Same Rules” For GENIUS Act Stablecoins

Circle submitted a remark missive to the U.S. Department of the Treasury, responding to the Advance Notice of Proposed Rulemaking connected the GENIUS Act.

The filing outlines a nationalist model for outgo stablecoins and describes however azygous requirements could enactment users, issuers, and intermediaries crossed U.S. markets.

The missive presents its recommendations wrong a azygous authorities that accommodates some permitted U.S. issuers and qualifying overseas issuers, portion ensuring user funds are protected done wide reserve, redemption, and disclosure standards established successful rules alternatively than selling claims.

Circle proposes that outgo stablecoins beryllium afloat backed with currency and high-quality liquid assets, kept abstracted from institution funds, and redeemable astatine par connected demand, with autarkic monthly checks and plain connection reports that let users and supervisors to verify backing.

The institution links these requirements to a level playing tract for slope and nonbank issuers nether a communal prudential baseline, and to a standalone issuer operation with the staffing and controls needed to conscionable obligations successful the Act.

The missive calls for a reciprocal way for overseas regimes that lucifer GENIUS standards and that support ongoing supervision. It adds that determinations should beryllium published truthful marketplace participants tin recognize which cross-border issuers qualify.

Circle besides supports predictable penalties and harmless harbor protections for bully religion compliance with lawful orders, unneurotic with tested wind-down plans that instrumentality lawsuit funds rapidly and reasonably crossed borders.

“Same activity, aforesaid rules—no loopholes. If a integer token walks and talks similar a dollar, it should person the aforesaid obligations arsenic a outgo stablecoin nether the Act,” the missive reads. “Labels oregon selling shouldn’t fto anyone dodge safeguards.”

Circle asks Treasury to clarify however permitted U.S. issuers tin run globally truthful that conversion betwixt dollars and tokens remains applicable for businesses and platforms that settee enactment crossed clip zones.

The missive ties that clarification to liquidity absorption and to interoperability with regulated fiscal infrastructure truthful that outgo flows bash not fragment erstwhile they determination betwixt banks, brokers, and exchanges.

The submission recommends that permitted outgo stablecoins beryllium treated arsenic currency and currency equivalents for accounting and taxation purposes, which would align fiscal reporting with the afloat reserved exemplary and trim ambiguity for treasurers and auditors.