The issuer of stablecoins Circle called on American authorities to establish a level playing field for banks and non-bank organizations when implementing the GENIUS law. The company submitted its comments to the U.S. Department of the Treasury as part of the discussion on the mechanisms for implementing new legislation on payment stablecoins.
Circle demands equality in regulation
In its statement, Circle emphasized the need for fair conditions for all market participants. "Banks, non-bank lending organizations, domestic and foreign issuers must follow the same rules to protect consumers from the risks of any regulatory relaxations," the company stated.
Circle also insists on clear requirements for access to the U.S. market and joint oversight with trusted foreign regulators. According to the company, this approach will promote healthy competition and prevent offshore arbitrage. Offshore arbitrage is the practice of companies relocating their activities to jurisdictions with softer or no regulation to avoid strict rules in their home countries.
The issuer confirmed its commitment to the key principles advocated by supporters of the bill:
Full backing of stablecoins by cash and high-quality liquid assets
Establishing clear requirements for ensuring compliance with rules
Definition of consequences for non-compliance with requirements
Circle's comments have become part of the second round of public discussions on the implementation of the GENIUS law. Although U.S. President Donald Trump signed the stablecoin bill in July, it will take effect either 18 months after enactment or 120 days after regulatory approvals.
The position of other market participants
The cryptocurrency exchange Coinbase has also presented its recommendations to the Treasury Department. The company urged to limit the ban on interest payments on stablecoins exclusively to issuers, while maintaining the possibility for cryptocurrency exchanges. These comments came after criticism from banks — they urged politicians to address this issue.
Despite the fact that the GENIUS law was signed nearly three months ago, the market structure bill for digital assets, passed by the U.S. House of Representatives, has made little progress in the Senate. This situation arose due to the halt of Congress's work and the ongoing government crisis, which has lasted for 37 days.
Senators are holding bipartisan discussions on the market structure bill. However, neither the Agriculture Committee nor the Banking Committee has announced any additional projects or updates as of Thursday morning. Republicans stated in August that they expect the bill to be signed by 2026.
The Treasury Department accepted comments on the implementation of the stablecoin bill until November 4. Now regulators are expected to analyze all submitted proposals and determine the final rules for the functioning of the stablecoin market in the U.S.
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