Circle urged the SEC to align its proposed Regulation Crypto Assets with the GENIUS Act and clarify treatment for payment stablecoins.
Circle said it submitted comments to the U.S. Securities and Exchange Commission on October 20 on the agency’s proposed Regulation Crypto Assets, urging the commission to align the framework with the GENIUS Act and to clarify how payment stablecoins should be treated in onchain capital formation. The company said the proposal could support innovation while preserving market transparency, investor protection, liquidity and efficiency, but asked for clearer rules on permissionless networks, stablecoin use and post-launch technical services.
In its comment letter, Circle backed the SEC’s stated goal of creating a tailored framework for certain crypto-asset offerings and investment contracts, while arguing that blockchain networks can complement existing market strengths through faster settlement, programmable transactions, transparent records and improved auditability. The company also emphasized technology neutrality and said permissionless networks such as Arc can offer scale and network security, while asking the SEC to clarify the treatment of different permissionless network structures.
Circle said the proposal should operate consistently with the GENIUS Act. It asked the SEC to clarify how GENIUS-compliant payment stablecoins may be used as payment and settlement assets in onchain capital formation, and to specify that qualifying payment stablecoins count as “cash” for purposes of proposed Rule 302(b). The company also called for dollar-based valuation treatment, appropriate accounting and customer-reserve treatment, and a reduction of the current 2% broker-dealer haircut to zero for GENIUS-compliant payment stablecoins, subject to objective safeguards.
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