Circle’s chief strategy officer (CSO) and head of global policy, Dante Disparte, releases stablecoin policy principles for the United States (US).
According to the blog post, Circle, the company behind USD Coin (USDC), has an estimated $54B in circulation.
Disparte listed the 19 guiding principles Circle had created as part of its endeavor to influence stablecoin policy in the US.
Disparte emphasized privacy issues, the need for regulatory clarity, and how stablecoins can coexist with a central bank digital currency.
He also stated the need for a level playing field between banks and non-banks regarding a digital currency pegged to the U.S. dollar.
“As a digital bearer instrument, dollar digital currencies should at all times remain backed 1:1 by equivalent dollar-backed high-quality liquid assets (HQLAs) in the care, custody, and control of well-regulated financial institutions and banks in a bankruptcy-remote manner,” the CSO noted.
Disparte also noted how the EU agreed on MiCA regulation for crypto assets’ framework, stating how the harmony of national regulatory and policy frameworks for stablecoin can advance U.S. economic competitiveness, job creation, payment system optionality, etc.
All this “while averting a harmful domestic fintech constitutional crisis, and global regulatory arbitrage,” he added.
According to the post, enacting a “stablecoin Glass-Steagall Act” can help avoid manipulative market behavior that might undermine consumer and market participant confidence, create systemic risks, and jeopardize their financial security.
Disparte concluded the post by saying “Dollar digital currencies should be treated as cash or cash-equivalents under the U.S. and globally accepted accounting principles to promote clarity for market participants and consistency across international standard setting bodies.”
