Circle Urges U.S. Treasury to Adopt Comprehensive Stablecoin Rules Under GENIUS Act

According to official submissions, Circle and a16z crypto outlined differing priorities for GENIUS Act stablecoin rules, addressing asset backing, regulatory scope, and technology-driven compliance approaches.

36d ago

Fact Check

The assessment that the statement is 'likely true' is based on strong, direct evidence from the most authoritative and relevant source provided. The blog post published by Circle itself expresses "strong support for the GENIUS Act" and advocates for its benefits in the context of global finance and treasury management. This public advocacy from the company at the center of the claim is a clear form of urging a regulatory body to adopt a specific piece of legislation. While the summary doesn't specify a direct communication to the U.S. Treasury, public support of this nature is a primary method for entities to lobby or urge for policy adoption. Corroborating evidence from Glenbrook Partners and Better Markets, while not naming Circle, confirms that the U.S. Treasury is the focus of discussions and submissions regarding stablecoin regulation and the implementation of the GENIUS Act. This establishes the context and plausibility of the claim. There is no contradictory evidence among the sources. The remaining sources are irrelevant to the specific claim, as they do not mention Circle, the GENIUS Act, or their interactions with the U.S. Treasury. The high confidence level is derived from the high authority and direct relevance of the evidence from Circle's own publication.

Summary

a16z crypto, in its official comments to the U.S. Treasury on the GENIUS Act, recommended distinguishing between decentralized stablecoins and payment stablecoins, proposing that decentralized variants be exempt from regulation to encourage innovation. The firm also suggested using decentralized identity systems with zero-knowledge proofs to prevent illicit finance. Circle, in its prior submission, urged full asset backing for all stablecoins, interoperability with foreign-issued tokens, and consistent regulatory treatment across issuers. Both submissions highlight contrasting approaches to fostering stablecoin development under the GENIUS Act framework.

Terms & Concepts

Stablecoin: A cryptocurrency designed to maintain a stable value by pegging it to a reserve asset such as the U.S. dollar.
GENIUS Act: A proposed U.S. legislative framework focused on regulating stablecoins and enhancing digital asset oversight.
Zero-Knowledge Proofs: Cryptographic methods that allow one party to prove knowledge of certain information to another party without revealing the information itself.