Circle urges stricter U.S. rules, backs GENIUS Act license

Circle submitted a comment letter to the Office of the Comptroller of the Currency on May 1 in support of stricter stablecoin rules under the proposed GENIUS Act licensing framework. The filing responds to the OCC’s proposed rule to establish a licensing regime for payment stablecoins in the United States.

The OCC proposal would set licensing requirements for issuers of dollar-backed stablecoins covering reserve management, operational standards and risk controls. Circle, the issuer of the USDC stablecoin with a market capitalization above $78 billion, backed provisions that would require issuers to operate as standalone, ring-fenced entities subject to supervisory oversight.

In its letter, Circle asked for full-reserve backing and reliable, on-demand redemption for users. The submission requested robust risk-management frameworks addressing credit, liquidity and operational risks, along with strong anti-money-laundering and compliance systems. The company framed those protections as measures to preserve user access to funds and to limit contagion risks in digital payments.

Circle also called for regulatory parity, arguing that U.S. standards should serve as a global benchmark and that domestic and foreign issuers should face the same requirements. The letter warned that fragmented rules and limited interoperability could undermine liquidity and confidence in digital dollar systems.

The filing said stablecoins should not be regulated the same way as tokenized bank deposits, stating the two instruments serve different functions and require distinct regulatory approaches. Circle described the OCC proposal as a step toward integrating stablecoins into mainstream payment infrastructure as use of digital dollars expands.

The OCC’s rulemaking is one of the most advanced U.S. efforts to formalize oversight of dollar-backed stablecoins. Industry comments, including Circle’s submission, are part of the public record and are expected to inform the final framework, which could affect how digital dollars are issued and used in the United States and abroad.