Circle Urges Consistent Rules for US Stablecoin Issuers as Treasury Implements GENIUS Act

Stablecoin issuer Circle is calling on US regulators to establish consistent, transparent, and reasonable guidelines for all stablecoin issuers. This request comes as the Treasury Department works to implement the GENIUS Act, a law signed in July intended to create a national framework for payment stablecoins and clarify regulation.

Key Takeaways from Circle’s Submission

• Equal Standards for All: Circle’s main argument is that every issuer—whether a bank, a private entity, or an international operator whose stablecoins are available in the US—should be held to the same high standards.
• Strong Backing Rules: The firm stressed that payment stablecoins must be fully backed by cash or high-quality, highly liquid short-term assets. This is crucial to protect users and prevent financial crisis risks.
• Preventing Regulatory Arbitrage: Inconsistent regulation, Circle warned, could push risky stablecoin activity outside the US. Shared supervision with trusted foreign regulators is needed to foster competition while managing offshore risks.
• Robust Enforcement: The company also argued that the rules need substantial penalties for violations to deter misuse and ensure the GENIUS Act achieves its aims.

Broader Regulatory Context

• Industry Feedback: Circle was not the only one to submit comments; Coinbase also filed its recommendations. This prompted the Treasury to clarify that the ban on paying interest on stablecoin balances applies only to the issuers of the coins, not platforms or individuals earning returns in other ways.
• Banking Concerns: This regulatory push follows warnings from US banks that some stablecoin offerings could begin to function like bank deposits, potentially competing with traditional savings accounts.
• Timeline: The GENIUS Act will take effect 18 months after signing or 120 days after regulators finalize detailed rules, meaning the actual implementation date is flexible based on the speed of the rulemaking process.
• Stalled Comprehensive Legislation: Meanwhile, a broader bill to establish regulations for digital markets (including cryptocurrency categorization, trading platforms, and digital asset securities) has passed the House but is stalled in the Senate due to legislative delays.

Circle’s push for a level playing field is intended to ensure user protection and foster innovation by establishing clear and balanced rules across the expanding digital payments industry.

November 2025, Cryptoniteuae