Circle Submits Comment Letter to SEC on Proposed Crypto Asset Regulation Rules, Recommends Treating GENIUS Act-Compliant Payment Stablecoins as Cash

Odaily: Circle has submitted a comment letter to the U.S. Securities and Exchange Commission regarding proposed crypto asset regulation rules, supporting the promotion of innovation under clear rules while maintaining transparency, investor protection, market integrity, liquidity, and efficiency. Circle recommends that the relevant rules be aligned with the GENIUS Act and requests clarification that payment stablecoins compliant with the Act may be used for on-chain capital formation and settlement, and that they constitute "cash" under proposed Rule 302(b), subject to the corresponding USD valuation, accounting, and customer reserve treatment. Circle also recommends reducing the broker-dealer haircut for payment stablecoins compliant with the GENIUS Act from 2% to zero, and requests that the SEC clarify that technical services provided after network operation do not constitute necessary administrative functions, while establishing a safe harbor rule for technology roadmaps.