Stablecoin issuer Circle has advocated for a level playing field among banks, nonbanks and stablecoin issuers as the US Treasury Department considers implementing the GENIUS Act following its signing into law in July.
In comments submitted on Tuesday as part of the Treasury’s notice of proposed rulemaking for GENIUS, Circle was one of many crypto companies that weighed in on how the US government should implement the law establishing a framework for payment stablecoins.
While the company reiterated many of the principles for which proponents of the bill had advocated, such as having stablecoins “fully backed with cash and high quality liquid assets,” it also urged the government to set clear requirements for enforcement and consequences for noncompliance.
“Bank, nonbank, domestic, and foreign issuers should follow the same rules to protect consumers from bearing the risks of any regulatory shortcuts,” said Circle in a Thursday notice. “Clear requirements for accessing US markets—and shared supervision with trusted foreign regimes—promote competition while preventing offshore arbitrage.”
Source: Circle
Circle’s recommendations came as part of a second round of public comments on the implementation of GENIUS. Though US President Donald Trump signed the stablecoin bill into law in July, it will take effect either 18 months after enactment or 120 days after regulators approve regulations related to implementation.
Related: Bank of England pledges to keep pace with US on stablecoin regulations
Coinbase also commented on the GENIUS Act, submitting recommendations to Treasury that requested the department limit a ban on stablecoin interest payments exclusively to issuers, while allowing it for crypto exchanges. The comments came following pushback from banking groups urging policymakers to address interest-bearing stablecoins in the bill.
Congress is still awaiting movement on market structure
Although GENIUS was signed into law almost three months ago, a digital asset market structure bill passed by the US House of Representatives has seen little movement in the Senate following a month-long congressional recess and the ongoing government shutdown, which is currently in its 37th day.
Lawmakers in the Senate are reportedly engaged in bipartisan discussions over the market structure bill, but neither the Agriculture Committee nor the Banking Committee has announced any additional drafts or updates as of Thursday morning. Republican leaders said in August that they had expected the bill to be signed into law by 2026.
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