Circle urges US Treasury to create a clear stablecoin framework under the GENIUS Act
The company called for simple, strong rules ensuring every stablecoin is fully backed, transparent, and redeemable on demand.
Circle has submitted its comments to the US Department of the Treasury, outlining its support for the GENIUS Act and calling for clear, consistent rules to govern payment stablecoin issuers.
The company emphasised that effective rulemaking could create a unified national framework for both domestic and foreign issuers, providing consumers with safer and more transparent financial products.
The firm urged Treasury to adopt a cooperative supervisory approach that promotes uniform compliance and risk management standards across jurisdictions. Circle warned against excessive restrictions that could harm liquidity, cross-border payments, or interoperability.
It also called for closing potential loopholes that might allow unregulated entities to avoid oversight while benefiting from the US dollar’s trust and stability.
Circle proposed safeguards requiring stablecoins to be fully backed, independently audited, and supported by transparent public reports. The firm stressed recognising foreign regimes, applying equal rules to all issuers, and enforcing consistent penalties.
Circle described the GENIUS Act as a chance to strengthen the stability of digital finance in the US. The company believes transparent, fully backed stablecoins and recognised foreign issuers could strengthen US leadership in secure, innovative finance.
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