Circle urges UK stablecoin regulation using MiCA and GENIUS

Circle policy chief Dante Disparte told the UK House of Lords that UK stablecoin regulation should combine the EU’s MiCA clarity with key elements of the US GENIUS Act. He warned that without a clear UK stablecoin regulation regime, stablecoin activity could keep moving offshore, increasing risk for UK users and weakening London’s role as a finance hub. The hearing supports a wider UK inquiry into stablecoin growth. The FCA is consulting on a broader crypto regulatory framework, expected to start on 25 Oct 2027, when firms carrying out regulated activities will need authorization. Disparte rejected a “bank vs stablecoin” framing, arguing that credible stablecoins can expand access if regulators require 1:1 reserves, high-quality liquid reserves, enforceable redemptions, and robust transparency. Circle’s USDC, the second-largest stablecoin by market value, was referenced as an example of trusted issuance standards. Mastercard’s Jesse McWaters added that stablecoins still lack a clear value proposition for everyday cardholder choice, but can speed up cross-border payments.