Dante Disparte, Circle’s chief strategy officer and head of global policy, reportedly urged US lawmakers to generate regulatory frameworks to achieve balance for associated risks with stablecoins.

Specifically, Disparte reportedly mentioned 18 principles Circle previously set up, as included in its attempt to form stablecoin policy in America. 

Circle, the firm that built USD Coin (USDC) with a reported $54 billion in circulation, reportedly emphasized worries related to privacy, “a level playing field” between banks and non-banks regarding a U.S. dollar-pegged digital currency, the way stablecoins are able to coexist together with a central bank digital currency and the need for regulatory clarity.

“Harmonizing national regulatory and policy frameworks for dollar digital currencies advances U.S. economic competitiveness, job creation and payment system optionality, while averting a harmful domestic ‘fintech constitutional crisis,’ and global regulatory arbitrage,” Disparte further remarked.

The Circle CSO reportedly referred to the update of the European Union in June granting approvals for the Markets in Crypto-Assets Framework (MiCA) – regulation put in place with a goal of bringing harmonization to regulations for crypto throughout EU member states. Disparte also commented that America has the opportunity to assume the pioneering position in an attempt to “avoid trans-Atlantic or global misalignment”, when it comes stablecoin regulation.

In America, the President’s Working Group on Financial Markets reportedly generated a November report focusing on stablecoin regulation locally. 

The policy reportedly came up with suggestions, one of which is placing stablecoin issuers under the scope of “appropriate federal oversight” within Congress’ purview, since the virtual asset has the ability to develop to a degree where it would fall “outside of the regulatory perimeter” of the Securities and Exchange Commission and Commodity Futures Trading Commission.