Stablecoin Issuer Circle Advocates for Level Playing Field in GENIUS Act Implementation
The Stablecoin Issuer Circle has advocated for a level playing field between banks, non-banks, and stablecoin issuers as the US Treasury Department considers implementing the GENIUS Act after it becomes law in July. This move aims to establish a framework for payments stablecoins, promoting transparency and consumer protection in the cryptocurrency market.
In comments submitted Tuesday as part of the Treasury Department’s notice of proposed rulemaking for GENIUS, Circle was one of many crypto companies that commented on how the U.S. government should implement the law. The company reiterated many of the principles championed by the bill’s proponents, such as “fully backing stablecoins with cash and high-quality liquid assets.” However, Circle also called on the government to set clear enforcement requirements and consequences for non-compliance, ensuring that all players in the market adhere to the same rules.
“Banks, non-banks, domestic and foreign issuers should follow the same rules to protect consumers from bearing the risks of regulatory shortcuts,” Circle said in a statement Thursday. “Clear requirements for access to U.S. markets – and shared oversight with trusted foreign regimes – promote competition while preventing offshore arbitrage.” This statement highlights the need for a cohesive regulatory approach to prevent regulatory arbitrage and protect consumers.
Source: Circle
Congress Seeks Input from Industry Players
Coinbase also commented on the GENIUS Act and submitted recommendations to the Ministry of Finance, asking the ministry to limit the ban on stablecoin interest payments only to issuers but to allow it for crypto exchanges. The comments came after opposition from banking groups that urged policymakers to include interest-bearing stablecoins in the bill. This highlights the ongoing debate and discussion among industry players and regulators as they work towards creating a comprehensive regulatory framework for stablecoins.
Although GENIUS went into effect nearly three months ago, a bill passed by the U.S. House of Representatives to structure the digital asset market has seen little movement in the Senate following a month-long congressional recess and the ongoing government shutdown, currently entering its 37th day. Senate lawmakers are reportedly holding bipartisan discussions on the market structure bill, but neither the Agriculture Committee nor the Banking Committee have announced additional drafts or updates as of Thursday morning.
Regulatory Developments and Industry Insights
Republican leaders said in August they expected the bill to take effect by 2026. The Bank of England has also promised to keep pace with the US on stablecoin regulations, indicating a global effort to create a cohesive and effective regulatory framework for the cryptocurrency market. As the regulatory landscape continues to evolve, industry players and consumers alike are eagerly awaiting clarity and guidance on the future of stablecoins and digital assets.
For more information on the GENIUS Act and its implementation, visit https://cointelegraph.com/news/stablecoins-circle-genius-implementation-rules
