US stablecoin issuer Circle has requested that US regulators establish consistent, transparent, and reasonable guidelines for other stablecoin issuers, as the Treasury Department takes steps to implement the GENIUS Act.
The law, signed in July, is designed to establish a national framework for payment stablecoins and provide more certainty regarding how digital dollar tokens are regulated nationwide.
Circle sent its comments this week as part of the Treasury’s current rulemaking procedure. It will flesh out what the law will look like in practice. The firm stated that the rules must be strong enough to protect users while also being balanced enough to enable innovation and competition in the expanding digital payments industry.
The company’s theme is that every issuer should be subject to the same standards, regardless of whether it is a bank or a private entity, and whether it operates in the US or abroad.
Circle urges consistent rules across all stablecoin issuers
In its submission, Circle argued that stablecoins used for payments need to be fully backed by cash or high-quality, highly liquid short-term assets. This is intended to prevent stablecoins from losing value in times of financial crisis. The firm argued that clear backing rules are necessary to prevent risks from being imposed on ordinary people.
The rules, Circle added, should ensure that no one group receives more favorable treatment. Banks, non-bank providers of financial services that utilize technology, and finance companies whose stablecoins are available in US markets should all be subject to the same supervisory regime.
The company warned that inconsistent regulation could push risky stablecoin activity out of the United States and beyond the reach of overseers who are monitoring such products.
“Clear conditions of access to US markets, including shared supervision between the US and trusted foreign regulators, will foster competition while protecting against risks arising offshore,” the company said.
Circle also stressed the need for robust enforcement. It also stated that penalties for breaking the rules should be substantial enough to deter misuse and maintain confidence in digital assets. Without this, it argued, the aims of the GENIUS Act would not be achieved.
Industry groups submit recommendations to the treasury
Circle wasn’t the only group that registered its comments. Coinbase also filed comments. The back and forth prompted the Treasury to clarify that a prohibition on paying interest on stablecoin balances should be limited to parties that issue the coins, not to individuals seeking returns from exchanges or platforms in other ways.
The request follows warnings from US banking institutions that some stablecoin offerings could begin to operate like bank deposits, potentially displacing traditional savings accounts in a competitive market niche.
The GENIUS Act won’t happen overnight. It would take effect 18 months after signing, or 120 days after the regulators complete and finalize the detailed rules. If regulators act quickly, the law might be in effect sooner; if rule-making is slow, there will be a delay.
Meanwhile, Congress is considering a broader law that would establish regulations for these digital markets, including guidelines for categorizing and overseeing cryptocurrencies, trading platforms, and digital asset securities. The bill already passed the House earlier this year, but it has not progressed in the Senate. Pauses for long recesses, backroom negotiations, and other legislative priorities have slowed the effort.
The doors remain open for bipartisan dialogue, according to news reports, but no new proposals are being brought to the table. Those estimates had been more like 2026, according to previous analyses by congressional leaders. Currently, the schedule is precarious due to present delays.
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