Circle's Recommendations for Stablecoin Standards
Circle submitted recommendations on Tuesday urging uniform standards across banks, nonbanks, and stablecoin issuers as the U.S. Department of the Treasury develops implementation rules for the GENIUS Act. The company emphasized the need for clear enforcement requirements and consequences for noncompliance.
This submission occurred during Treasury's second public comment round on the legislation, which President Trump signed in July. The law establishes a federal framework for payment stablecoins and takes effect 18 months after enactment or 120 days after regulators approve implementation rules.
Circle stated that all issuers should adhere to identical standards, irrespective of their entity type or location, to prevent consumers from bearing the risks associated with regulatory shortcuts. The company also called for the recognition of foreign jurisdictions that maintain effective ongoing supervision, rather than relying solely on registration-only frameworks.
Key principles advocated by Circle include the requirement for stablecoins to be fully backed with cash and high-quality liquid assets, segregated from company funds, and redeemable at par on demand. Circle emphasized the importance of independent monthly verification with public reports, enabling customers to confirm the availability of backing assets.
The issuer warned that any digital asset designed to maintain a stable value should face identical obligations, regardless of its marketing labels. This measure is intended to prevent tokens from evading oversight while simultaneously exposing consumers to potential harm.
Coinbase's Stance on Interest Payments and Market Structure Bill
Coinbase also submitted comments, requesting that the Treasury limit interest payment bans to issuers only, while allowing cryptocurrency exchanges to continue offering such services. This request followed pushback from banking groups regarding interest-bearing stablecoins.
A digital asset market structure bill that passed the House has shown limited progress in the Senate following the congressional recess and the 37-day government shutdown. Neither the Agriculture nor Banking committees announced updates on Thursday morning, despite ongoing bipartisan discussions. Republican leaders stated in August that they anticipated the market structure bill to be signed into law by 2026.