6 days ago
Circle urged the OCC to finalize clear, consistently applied GENIUS Act rules for outgo stablecoin issuers. The institution said the projected model should enactment reliable redemption and beardown hazard controls for regulated integer outgo instruments.
Key Takeaways
- Circle supported OCC rules for outgo stablecoins nether a nationalist licensing framework.
- Uniform standards could trim arbitrage, support users, and enactment trusted integer dollars.
- Final rules whitethorn signifier redemption, reserves, supervision, and issuer contention nationwide.
Circle Backs National Stablecoin Licensing Standards
Circle Internet Group (NYSE: CRCL) revealed May 5 that it had submitted comments connected May 1 to the Office of the Comptroller of the Currency (OCC) regarding the regulator’s projected GENIUS Act rule. The filing supports a nationalist licensing authorities for outgo stablecoins and clearer oversight standards for dollar-backed integer outgo instruments.
The OCC connection sets standards for reserves, redemption, accusation security, supervision, compliance, and operational readiness. Circle said those requirements should bespeak the demands placed connected large outgo stablecoin issuers. The institution emphasized reliable redemption, operational resilience, and continuous 24/7/365 functionality. It besides said regulated outgo stablecoins should stay transferable, fungible, and usable crossed customers, platforms, and markets. Circle wrote:
“The OCC’s rulemaking turns the GENIUS Act into a durable model that works successful practice, requiring issuers to conscionable highest-level standards of a standalone, ring-fenced entity with each of the capableness to conscionable the ample demands placed connected planetary issuers.”
The filing besides argued that issuers should vie nether communal prudential rules. That includes bank, nonbank, state, federal, domestic, and overseas issuers. Circle said uneven standards could weaken trust, make arbitrage, and disadvantage compliant firms. The constituent is that stablecoin oversight should not beryllium connected issuer benignant oregon charter path.
OCC Proposal Sets Broader Stablecoin Oversight Path
The OCC’s connection would use to nationalist banks, national savings associations, national branches, overseas issuers, and definite state-qualified outgo stablecoin issuers nether its jurisdiction. Most requirements would beryllium successful a caller 12 CFR 15, covering reserves, redemption, hazard management, supervision, custody, applications, and operational backstops. The OCC besides said anti-money laundering and sanctions-related rules would beryllium addressed separately with the Treasury Department.
Circle said the last model should enactment planetary standards for trusted integer dollars portion preserving transferability and reliable redemption. The institution besides called for oversight covering credit, liquidity, operational, and anti-money laundering risks. Circle stated:
“With clear, practical, and consistently applied rules, the United States tin support consumers, physique the marketplace of the future, and fortify the relation of trusted integer dollars successful the planetary economy.”
English (US) 