As the U.S. government moves closer to establishing a clear regulatory framework for stablecoins, major crypto companies are actively engaging with policymakers to shape its implementation. Circle, a leading issuer of stablecoins, has called for a level playing field among financial institutions and stablecoin issuers, emphasizing transparency and consistent enforcement in the emerging regulatory landscape.
- •Circle advocates for equitable regulations for banks, nonbanks, and stablecoin issuers to ensure consumer protection and prevent offshore arbitrage.
- •The firm emphasizes stablecoins should be fully backed by cash and high-quality liquid assets.
- •Public comments on the GENIUS Act highlight industry pushes for clear compliance rules and consistent oversight.
- •Despite the law’s passage in July, implementation faces delays amid congressional gridlock and ongoing government shutdown.
- •Additional stakeholders, like Coinbase, seek responsible regulation around stablecoin interest payments and market structure.
Stablecoin provider Circle has strongly voiced its position on the impending regulatory framework for cryptocurrency issued by the U.S. government. In comments submitted this week in response to the Treasury Department’s proposed rules for the GENIUS Act, the company stressed the importance of a consistent and transparent approach across all financial institutions. The company advocates for stablecoins to be “fully backed with cash and high-quality liquid assets,” reinforcing the need for clear enforcement protocols and penalties for non-compliance.
Circle’s input is part of a broader public consultation following the law’s signing into effect by President Donald Trump in July. Although the legislation formally becomes active either 18 months post-enactment or 120 days after regulatory approval, industry leaders are urging a swift yet measured implementation. Meanwhile, other crypto firms like Coinbase have also submitted recommendations, specifically requesting the Treasury enforce stablecoin regulations fairly—permitting interest payments for crypto exchanges but not solely for issuers. This aligns with recent lobbying efforts by banking groups urging policymakers to address the risks posed by interest-bearing stablecoins.
Congress Awaits Movement on Market Structure
Despite the law’s passage, progress on a related digital asset market structure bill remains slow. Delays are exacerbated by the ongoing government shutdown, now in its 37th day, and a prolonged congressional recess. While bipartisan talks continue, neither the Senate’s Agriculture nor Banking Committees have advanced any draft legislation, leading to cautious expectations of full legislative action possibly not happening until 2026. Industry stakeholders remain attentive as lawmakers debate the future structure of crypto markets and regulations.
Navigating the Evolving Regulatory Landscape
As U.S. officials refine stablecoin rules, the industry continues to advocate for balanced regulation that fosters innovation while safeguarding consumers and the broader financial system. The coming months will be crucial in determining how the U.S. balances technological growth with regulatory oversight in the rapidly evolving crypto markets landscape.