Michaela
Stablecoin issuer Circle has expressed support for the full implementation of the GENIUS framework, calling for a unified national approach to regulate both domestic and foreign payment stablecoin issuers. In comments submitted to the U.S. Treasury Department, the company emphasized the importance of clear, consistent oversight to protect consumers and strengthen confidence in the digital payments ecosystem.
Key Points
- Treasury Department, the company emphasized the importance of clear, consistent oversight to protect consumers and strengthen confidence in the digital payments ecosystem
- Treasury to implement the GENIUS framework with clear, consistent rules for all stablecoin issuers, domestic, foreign, bank, and nonbank alike
- The company emphasized that stablecoins should be fully backed by cash and high-quality liquid assets, with strict enforcement and penalties for noncompliance
Key points:
- Circle urged the U.S. Treasury to implement the GENIUS framework with clear, consistent rules for all stablecoin issuers, domestic, foreign, bank, and nonbank alike.
- The company emphasized that stablecoins should be fully backed by cash and high-quality liquid assets, with strict enforcement and penalties for noncompliance.
- Circle framed the GENIUS Act as a chance to build a unified, transparent, and innovation-friendly federal digital payments system that reinforces U.S. leadership in digital finance.
Circle submitted comments to the Treasury on November 4 in response to its Advance Notice of Proposed Rulemaking on implementing the GENIUS Act. “We welcome the opportunity to help Treasury operationalize a statute that does more than set guardrails for payment stablecoins—it lays groundwork for a federal digital payments framework in the United States,” Circle wrote in a blog post discussing their recommendations.
The company reaffirmed several key principles championed by supporters of the GENIUS Act, including the requirement that stablecoins be fully backed by cash and high-quality liquid assets. At the same time, Circle urged regulators to establish clear enforcement standards and consistent penalties for noncompliance, emphasizing that banks, nonbanks, and both domestic and foreign issuers should operate under uniform rules to ensure consumer protection and prevent regulatory loopholes.
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“GENIUS implementation is an opportunity to unify standards, raise transparency, and de-risk core payment functions without constraining innovation,” Circle wrote. “By setting clear definitions, risk-sensitive prudential requirements, predictable enforcement, and a reciprocal path for compliant foreign issuers, Treasury can promote a safer, more competitive market that channels demand toward transparent, fully reserved, compliance-anchored products—reinforcing U.S. leadership in digital finance,” the firm added.
Circle’s recommendations were submitted as part of the second round of public consultations on the GENIUS Act, following its signing into law by President Donald Trump in July.
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As regulators continue shaping the GENIUS Act’s framework, Circle’s response reflects a broader industry push for clarity, accountability, and uniform oversight in the fast-evolving stablecoin sector. The company’s stance spotlights the growing convergence between traditional financial safeguards and digital asset innovation, as policymakers seek to balance innovation with systemic stability.
Whether these measures ultimately strengthen consumer trust and foster responsible growth in the U.S. stablecoin market will depend on how effectively the forthcoming rules are enforced and how aligned private issuers remain with national financial priorities.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
