PANews reported on May 5th that stablecoin issuer Circle submitted a comment document to the U.S. Office of the Comptroller of the Currency (OCC), proposing suggestions on the implementation details of the GENIUS Act, focusing on the regulatory structure and institutional-level risk management framework for payment-based stablecoins. This act establishes the first dedicated regulatory system for payment stablecoins in the United States. The OCC's proposed rules cover reserve management, information security, and 24/7 operational requirements, and are considered a significant regulatory milestone for digital payment infrastructure.
In its document, Circle stated that stablecoins have gradually become an integral part of the global financial system and need to meet the standards of being "redeemable, transparent, trustworthy, and subject to institutional-grade risk control." Its core viewpoints include:
- US standards should become global benchmarks: strengthening international trust in the US dollar stablecoin and its ability to export institutional authority.
- Stablecoins need to serve as a unified payment tool: to avoid market fragmentation affecting liquidity and settlement efficiency.
- Consumer protection is at the core: ensuring that holders can redeem their assets at par value at any time.
- A fair competition regulatory framework: Banks and non-bank issuers should be on the same regulatory boundary.
- Strengthening systemic risk management: covering liquidity, credit, operational, and compliance risks.
- Distinguishing between stablecoins and tokenized deposits: They have different functions and should be regulated separately.
Circle points out that the GENIUS Act marks a key turning point in the regulation of dollar-denominated digital currencies, and the OCC rules will further promote its implementation, forming an enforceable and scalable regulatory system, thereby consolidating the position of dollar-denominated stablecoins in the global payment system.
