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06/01/26
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Circle Calls for Fair Regulation of Stablecoins Under GENIUS Act
Circle, a leading stablecoin issuer, has emphasized the importance of establishing a level playing field among financial institutions in the context of upcoming U.S. regulations. As the Treasury Department considers implementing the GENIUS Act — legislation signed into law in July — Circle has submitted detailed comments urging for consistent treatment of bank and nonbank stablecoin issuers. The company advocates for clear standards that apply equally to domestic and foreign issuers to ensure consumer protection and prevent regulatory arbitrage.
In its response to the Treasury’s proposed rulemaking, Circle reiterated its stance that stablecoins should remain fully backed by cash and high-quality liquid assets. However, it also called for comprehensive enforcement mechanisms and well-defined sanctions for noncompliance. The company highlights that uniform regulation — across different types of issuers — will foster healthy competition and facilitate market access while safeguarding stakeholders from potential risks associated with regulatory gaps.
These submissions reflect the broader industry dialogue on the implementation of GENIUS, which aims to create regulatory clarity for payment stablecoins. Although signed into law, the regulations are not yet in force. The law is set to take effect either 18 months post-enactment or 120 days following regulatory approval, with the intention of establishing a robust framework for stablecoin issuance and oversight.
Meanwhile, the broader market structure legislation remains stagnant in Congress. Despite the initial progress, recent months have seen limited activity in the Senate, partly due to ongoing government shutdowns and legislative lags following the recent congressional recess. Committee discussions continue, but no new drafts or updates have been announced. Congressional leaders have indicated that, if passed, these measures could become law by 2026, marking a significant step in the evolution of the digital asset landscape in the United States.
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