Circle CSO lays out policy principles for stablecoins in US

Dante Disparte, Circle’s chief strategy officer and head of global policy who has previously testified at congressional hearings, has called on United States lawmakers to balance the risks with developing a regulatory path for stablecoins.

In a Monday blog post, Disparte named 18 principles Circle had established as part of its effort to shape stablecoin policy in the United States. Circle, the company behind USD Coin (USDC) with a reported $54 billion in circulation, highlighted privacy concerns, “a level playing field” between banks and non-banks over a U.S. dollar-pegged digital currency, how stablecoins can coexist alongside a central bank digital currency, and the need for regulatory clarity.

“Harmonizing national regulatory and policy frameworks for dollar digital currencies advances U.S. economic competitiveness, job creation and payment system optionality, while averting a harmful domestic ‘fintech constitutional crisis,’ and global regulatory arbitrage,” said Disparte.

The Circle CSO cited the European Union in June passing the Markets in Crypto-Assets Framework, or MiCA – legislation aimed at harmonizing regulations for crypto among EU member states. Disparte added that the U.S. could take a leading role in an effort to “avoid trans-Atlantic or global misalignment” on stablecoin regulation.

In the United States, the President’s Working Group on Financial Markets issued a report in November on stablecoin regulation in the country. The policy recommendations include having stablecoin issuers subject to “appropriate federal oversight” under Congress’ purview, as the digital asset could grow to a point it would fall “outside of the regulatory perimeter” of the Securities and Exchange Commission and Commodity Futures Trading Commission.

Related: Cryptopedia: Learn the concepts behind stablecoins and how they work

Disparte was part of Facebook’s Libra stablecoin venture – later renamed Diem – before leaving for Circle in April 2021. Circle CEO Jeremy Allaire has also previously testified at congressional hearings on the digital asset space, addressing the House Committee on Financial Services in December 2021 and a Senate hearing in 2019.

All Dutch and English crypto news!

Chiliz is up by more than 15% on Tuesday: Here’s why

The cryptocurrency market continues its poor start to the week, but Chiliz has been performing excellently today.   CHZ, the native token of the Chiliz blockchain, is...

‘I alone am responsible,’ says CEO Do Kwon in first interview since collapse

The CEO of Terra has come out to take responsibility for the project's crash earlier this year.   Do Kwon, the founder of Terra, has given his...

Brazil brokerage giant with 3.6M clients launches BTC and ETH trading

Brazilian brokerage giant XP Inc has officially launched its crypto trading platform 'XTAGE' in Brazil, bringing a potential 3.6 million users to the crypto markets.  The...

Bitrue introduces ETH PoW token ahead of Merge upgrade

Bitrue, the leading cryptocurrency exchange based in Singapore, is providing its users with an Ethereum Proof of Work token in advance of the Merge upgrade,...

Beste exchanges

Koop je crypto bij Bitvavo