Dante Disparte, Circle\u2019s 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.<\/p>\n
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, \u201ca level playing field\u201d 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.<\/p>\n
\u201cHarmonizing 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 \u2018fintech constitutional crisis,\u2019 and global regulatory arbitrage,\u201d said Disparte. <\/p>\n
The Circle CSO cited the European Union in June passing the Markets in Crypto-Assets Framework, or MiCA \u2014 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 \u201cavoid trans-Atlantic or global misalignment\u201d on stablecoin regulation.<\/p>\n
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 \u201cappropriate federal oversight\u201d under Congress\u2019 purview, as the digital asset could grow to a point it would fall \u201coutside of the regulatory perimeter\u201d of the Securities and Exchange Commission and Commodity Futures Trading Commission. <\/p>\n