Circle Advocates for Uniform Stablecoin Regulation Under GENIUS Act

Circle has intensified its push for regulatory clarity in the stablecoin market, submitting a second round of comments to the U.S. Treasury. The firm demands equal treatment for bank and nonbank issuers under the proposed GENIUS Act framework, emphasizing the need for full asset backing, monthly audits, and robust insolvency protocols.

The company's proposal hinges on three pillars: consumer protection through transparency, fair competition via global reciprocity agreements, and market integrity via uniform enforcement. Circle warns that inconsistent rules could fracture the digital dollar ecosystem, urging Congress to prevent regulatory arbitrage by offshore issuers.

At stake is the $150B stablecoin market's ability to maintain parity with traditional finance safeguards. Circle's position reflects growing industry consensus that clear rules will determine whether dollar-pegged tokens become infrastructure or remain speculative instruments.