Circle CSO Outlines Stablecoin Policy Proposals for the U.S.

At congressional hearings, Dante Disparte, the chief strategy officer (CSO) and head of the global policy of Circle, spoke and urged American legislators to weigh the risks while creating a regulatory framework for stablecoins. Circle, the company behind USD Coin (USDC), has an estimated $54 billion in circulation. Disparte listed the 18 principles Circle had formed as part of its campaign to influence stablecoin legislation in the United States in a blog post on Monday. It emphasized privacy issues, the need for regulatory clarity, how stablecoins can coexist with a central bank digital currency, and the market for “a level playing field” between banks and non-banks regarding a U.S. dollar-pegged digital currency. Markets in Crypto-Assets (MiCA) Framework The Markets in Crypto-Assets Framework, or MiCA, legislation intended to unify cryptocurrency rules among E.U. member states, was passed by the European Union in June, according to the Circle CSO. To “prevent trans-Atlantic or worldwide misalignment” about stablecoin legislation, Disparte continued, the U.S. could play a leading role. President’s Working Group on Financial Markets released a report on stablecoin regulation in the U.S. in November. Stablecoin issuers should be subject to “appropriate federal oversight” under Congress’ jurisdiction, according to the policy recommendations, as the digital asset may develop to the point where it is “outside the regulatory perime...