Circle, the company behind the popular USDC stablecoin, has recently dispelled rumors suggesting that they plan to apply for a US banking license. Chief Strategy Officer, Dante Disparte, took to social media to clarify that Circle has no intentions of becoming a bank or any other type of insured depository institution. Instead, the firm is focused on aligning with future regulations on payment stablecoins.
Disparte emphasized that Circle is prepared to register under a state or federal trust charter or operate through a non-bank license if required. This statement directly contradicts reports circulating about Circle and other major crypto firms, such as Coinbase, preparing to apply for banking licenses due to the favorable regulatory environment under President Donald Trump.
The changing regulatory landscape in the US has opened up new opportunities for traditional banks to interact with digital assets, including dollar-based tokens. This shift is seen as a positive step towards broader crypto adoption. Jason Karsh, a business leader at Blocks, praised the change as a meaningful step towards integrating crypto into everyday finance.
In terms of stablecoin legislation, Disparte highlighted the importance of supporting innovation while protecting consumers. He urged Congress to pass bipartisan payment stablecoin legislation to champion American innovation, stability, and consumer safety. These comments come as the US Congress debates two key bills aimed at shaping the future of stablecoin regulation in the country.
The STABLE Act and the GENIUS Act propose new standards for liquidity, reserves, and compliance with anti-money laundering rules. Lawmakers hope that these bills will help build trust around US-based stablecoin issuers and maintain the global influence of the US dollar.
Overall, Circle remains focused on navigating the evolving regulatory landscape and supporting innovation in the crypto industry. By staying proactive and engaging with regulators, the company aims to continue providing a secure and reliable platform for users to transact with stablecoins like USDC.