Circle Pushes Uniform Stablecoin Rules Under GENIUS Act
Circle has submitted recommendations to the U.S. Treasury on implementing the GENIUS Act. It urges uniform stablecoin regulation for banks, nonbanks and both domestic and foreign issuers. Payment stablecoins must be fully backed by cash and high-quality liquid assets. These reserves should be segregated from corporate funds and redeemable on demand.
Circle also calls for transparent monthly audits, public reporting and clear enforcement penalties. It requests safe-harbor for good-faith compliance and warns against regulatory shortcuts and offshore arbitrage. Signed in July by President Trump, the GENIUS Act establishes a federal framework that takes effect 18 months after enactment or within 120 days following rule approval. A separate market structure bill remains stalled in the Senate amid a government shutdown. This stablecoin regulation framework aims to strengthen market integrity, boost consumer protection and level the playing field.
Bullish
Circle’s push for clear stablecoin regulation under the GENIUS Act is likely bullish for the stablecoin market. In the short term, traders may see minimal price volatility as stablecoins remain pegged, but the improved regulatory clarity boosts investor confidence. Over the long term, robust backing requirements, transparent audits and equal regulatory treatment should enhance market stability and adoption. This environment can attract more institutional participation and drive growth in USDC market share, supporting positive sentiment and usage.