Circle denies plans to become a bank, focuses on aligning with stablecoin regulations
Circle, the issuer behind the USDC stablecoin, has firmly denied rumors suggesting it plans to apply for a US banking license.
The firm’s Chief Strategy Officer, Dante Disparte, clarified on social media that Circle has no plans to become a bank or any other type of insured depository institution.
Disparte emphasized that the firm is focused on aligning with future regulations on payment stablecoins instead. He added that Circle is prepared to register under a state or federal trust charter or operate through a non-bank license if required.
Disparte’s statement directly counters circulating reports suggesting that Circle and other major crypto firms like Coinbase were preparing to apply for banking licenses due to the favorable regulatory environment under President Donald Trump.
The speculations are unsurprising, considering there has been a noticeable shift in how US regulators are approaching the crypto industry.
For context, the Federal Reserve recently rolled back previous guidance that limited traditional banks’ ability to interact with digital assets, including dollar-based tokens.
The reversal is seen by many as a green light for broader crypto adoption. Jason Karsh, a business leader at Blocks, welcomed the change, calling it a meaningful step toward making crypto a practical part of everyday finance.
Stablecoin legislations
Disparte suggested that the firm focus on helping the US Congress pass stablecoin legislation supporting innovation while protecting consumers.
Disparte said:
“We urge Congress to pass bipartisan payment stablecoin legislation now to champion American innovation, stability, and consumer safety.”
These comments come as the US Congress debates two key bills to shape the future of stablecoin regulation in the country.
The first bill is the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, and it recently cleared the House Financial Services Committee. The second, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, is also progressing through the legislative pipeline.
The bills propose new standards for liquidity, reserves, and compliance with anti-money laundering rules. Lawmakers hope the legislation will help maintain the global influence of the US dollar by building trust around US-based stablecoin issuers.
The post Circle denies plans to become a bank, focuses on aligning with stablecoin regulations appeared first on CryptoSlate.
Read More
Coinbase contends state lawsuits impede access to $90M in staking rewards for users
Paul Atkins calls for fresh SEC crypto rules to end years of innovation stifling
Circle denies plans to become a bank, focuses on aligning with stablecoin regulations
Circle, the issuer behind the USDC stablecoin, has firmly denied rumors suggesting it plans to apply for a US banking license.
The firm’s Chief Strategy Officer, Dante Disparte, clarified on social media that Circle has no plans to become a bank or any other type of insured depository institution.
Disparte emphasized that the firm is focused on aligning with future regulations on payment stablecoins instead. He added that Circle is prepared to register under a state or federal trust charter or operate through a non-bank license if required.
Disparte’s statement directly counters circulating reports suggesting that Circle and other major crypto firms like Coinbase were preparing to apply for banking licenses due to the favorable regulatory environment under President Donald Trump.
The speculations are unsurprising, considering there has been a noticeable shift in how US regulators are approaching the crypto industry.
For context, the Federal Reserve recently rolled back previous guidance that limited traditional banks’ ability to interact with digital assets, including dollar-based tokens.
The reversal is seen by many as a green light for broader crypto adoption. Jason Karsh, a business leader at Blocks, welcomed the change, calling it a meaningful step toward making crypto a practical part of everyday finance.
Stablecoin legislations
Disparte suggested that the firm focus on helping the US Congress pass stablecoin legislation supporting innovation while protecting consumers.
Disparte said:
“We urge Congress to pass bipartisan payment stablecoin legislation now to champion American innovation, stability, and consumer safety.”
These comments come as the US Congress debates two key bills to shape the future of stablecoin regulation in the country.
The first bill is the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, and it recently cleared the House Financial Services Committee. The second, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, is also progressing through the legislative pipeline.
The bills propose new standards for liquidity, reserves, and compliance with anti-money laundering rules. Lawmakers hope the legislation will help maintain the global influence of the US dollar by building trust around US-based stablecoin issuers.
The post Circle denies plans to become a bank, focuses on aligning with stablecoin regulations appeared first on CryptoSlate.
Read More
Coinbase contends state lawsuits impede access to $90M in staking rewards for users