Circle Urges “Same Activity, Same Rules” For GENIUS Act Stablecoins
Circle submitted a comment letter to the U.S. Department of the Treasury, responding to the Advance Notice of Proposed Rulemaking on the GENIUS Act.
The submitting outlines a nationwide framework for cost stablecoins and describes how uniform necessities may help customers, issuers, and intermediaries throughout U.S. markets.
The letter presents its suggestions inside a single regime that accommodates each permitted U.S. issuers and qualifying international issuers, whereas guaranteeing client funds are protected by way of clear reserve, redemption, and disclosure requirements established in guidelines somewhat than advertising and marketing claims.
Policy Principles And Supervision
Circle proposes that cost stablecoins be absolutely backed with money and high-quality liquid belongings, stored separate from firm funds, and redeemable at par on demand, with impartial month-to-month checks and plain language studies that permit customers and supervisors to confirm backing.
The company hyperlinks these necessities to a degree enjoying subject for financial institution and nonbank issuers underneath a typical prudential baseline, and to a standalone issuer construction with the staffing and controls wanted to fulfill obligations within the Act.
The letter requires a reciprocal path for international regimes that match GENIUS requirements and that keep ongoing supervision. It provides that determinations needs to be printed so market contributors can perceive which cross-border issuers qualify.
Circle additionally helps predictable penalties and secure harbor protections for good religion compliance with lawful orders, along with examined wind-down plans that return buyer funds shortly and pretty throughout borders.
“Same exercise, similar guidelines—no loopholes. If a digital token walks and talks like a greenback, it ought to have the identical obligations as a cost stablecoin underneath the Act,” the letter reads. “Labels or advertising and marketing shouldn’t let anybody dodge safeguards.”
Market Use, Global Reach, And Accounting Treatment
Circle asks Treasury to make clear how permitted U.S. issuers can function globally in order that conversion between {dollars} and tokens stays sensible for companies and platforms that settle exercise throughout time zones.
The letter ties that clarification to liquidity administration and to interoperability with regulated monetary infrastructure in order that cost flows don’t fragment once they transfer between banks, brokers, and exchanges.
The submission recommends that permitted cost stablecoins be handled as money and money equivalents for accounting and tax functions, which might align monetary reporting with the absolutely reserved mannequin and scale back ambiguity for treasurers and auditors.
It additionally urges clear steerage that applies GENIUS obligations to any token designed to keep up a steady worth in funds, together with merchandise that deny redemption however in any other case operate like compliant cost stablecoins, in order that client safety and market integrity don’t depend upon labels.
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