Circle CSO has developed stablecoin policy standards for the US market

Circle CSO has developed stablecoin policy standards for the US market

Dante Disparte, Circle's chief strategy officer and head of global policy, who has previously testified at congressional hearings, has urged American legislators to evaluate the risks while developing a regulatory framework for stablecoins.

Disparte outlined 18 guiding principles in a blog post on Monday that Circle has developed as part of its efforts to influence stablecoin legislation in the United States. Circle, the company behind USD Coin (USDC), which has an estimated $54 billion in circulation, emphasized privacy issues, the need for regulatory clarity, how stablecoins can coexist with a central bank digital currency, and the need for "a level playing field" between banking and non-banking institution regarding a U.S. dollar-pegged digital currency.

According to Disparte, “incorporating national regulatory and policy frameworks for dollar digital currencies boost United States economic competitiveness, job creation, and payment system flexibility while preventing a damaging "fintech constitutional crisis" at domestic and international regulatory arbitrage.”

According to the Circle CSO, the Markets in Crypto-Assets Framework, or MiCA, legislation aimed at standardizing rules for cryptocurrencies among EU member states, was passed by the European Union in June. Disparte noted that in an effort to "prevent trans-Atlantic or worldwide misalignment" on stablecoin legislation, the U.S. might play a leading role.

In November, a report on stablecoin regulation in the United States was released by the President's Working Group on Financial Markets. According to the policy recommendations, stablecoin issuers should be subject to "appropriate federal oversight" under Congress' jurisdiction as the digital asset may develop to the point where it is "outside the governance boundary" of the SEC and SFTC.