Original title: Dialogue with Circles Chief Strategy Officer: After the implementation of the GENIUS Act, the competition between banks and non-bank institutions has just begun
Compiled edited by TechFlow
Guest: Dante Disparte, Chief Strategy Officer and Head of Global Policy and Operations, Circle
Moderator: Laura Shin
Podcast source: Unchained
Original title: With the GENIUS Act Passed, Can Crypto Compete With Banks?
Air Date: July 19, 2025
Summary of key points
After years of hostility, the United States has finally passed its first federal law regarding the crypto industry.
The bipartisan stablecoin legislation, the GENIUS Act, was signed into law by President Trump after a last-minute standoff in Congress. Although the bill was considered a “done deal,” its passage became choppy this week, with Democrats raising objections to Trump’s ties to cryptocurrencies and the Freedom Caucus suddenly rebelling over provisions opposing central bank digital currencies (CBDCs).
Now that the bill has passed, what will be its impact? Who will benefit or lose from it?
In this episode, Circle’s Chief Strategy Officer Dante Disparte, one of the key figures behind this legislation, explains:
How the bill could win bipartisan support amid political tensions
Why banks might think twice before issuing stablecoins
Why Circle is applying for a national trust bank charter
Additionally, the show discusses the debate surrounding interest-bearing stablecoins, how this bill fits into the broader financial regulatory system, and whether American consumers and the dollar will benefit as a result.
Summary of highlights
The use of money should be as free as possible.
The point is that the crypto industry is finally getting the legalization it has long desired, a clear path forward in U.S. law and regulation, and a chance to compete.
The significance of the GENIUS Act goes far beyond cryptocurrency itself. This may be the first financial regulatory bill in U.S. history that aims to promote growth, competition and protect consumers. Its core is to establish clear rules for the market and build a rules-based competitive environment.
The GENIUS Act sets clear rules for the market, and ultimately the biggest winners are American consumers and market participants, while also further consolidating the dollars position in the global economy.
The most important point of the GENIUS Act is the concept of international reciprocity, which gives the U.S. Treasury the power to promote the U.S. regulatory framework around the world. This is crucial because it ensures that the United States can take the lead in the development of international rules, rather than passively accepting the rules of other countries. This applies not only to cryptocurrencies, but also to the global use of stablecoins.
Throughout my career, I have often represented American interests in international institutions and government banking meetings, and although I was a representative of the private sector, this time, the United States will finally have a formal say in the formulation of these rules.
There is still a huge gap in financial access worldwide, and the United States and other countries are in urgent need of alternative payment systems. In the future, many companies may compete around data and regard data as an asset. In this era when data is called new oil, can blockchain become a new tool to carry this data? This is a question worth pondering.
The fully-reserve stablecoin model solves a core problem in the early days of cryptocurrency - consumer regret due to price volatility. This asset is not only a pricing mechanism for crypto transactions, but also an important medium of exchange for the Internet economy.
The GENIUS Act and the upcoming U.S. market structure regulation bill will allow cryptocurrencies and blockchain technology to gradually shift from obvious applications to deeper infrastructure, and their impact will gradually become apparent.
I hope that in the next five years, we will not only be able to consolidate the dollar’s position as the core currency of the Internet economy and use it as a strategic advantage for the United States in global competition, but also enable more people to enjoy safe and reliable financial services based on smart devices.
Crypto Week Was Better Than Anyone Expected
Laura:
This is a very important time for the crypto industry. This week marks the end of what is known as Crypto Week in Congress. We are discussing the GENIUS Act, the first major crypto legislation in the United States, which will soon be signed into law by President Trump. This bill is the result of a multi-year effort by multiple members of Congress to regulate the development of stablecoins. Before we started recording, you mentioned that you have been working on this for seven years. While many people thought that this bill would pass smoothly at the beginning of this administration, the actual progress has made the final result more confusing.
So, what led to this suspense and how did it finally come to pass?
Dante:
Yes, it seems that if “Crypto Week” is not complete without some political games and drama. One of the biggest dramas this week was the movement against central bank digital currencies (CBDCs), which really caught many people by surprise.
However, the key lies in the final results, and these results actually exceeded everyones expectations. First, the GENIUS Act passed with more than 300 votes in favor, with 102 Democrats voting in favor with Republicans. The passage of this bill is obviously an important bipartisan achievement in the current highly polarized political environment in the United States, reflecting the national interest and the important role of the US dollar in the global economy. This is undoubtedly a great achievement.
In addition, two other bills have also made important progress. The Clarity Act is the House of Representatives response to legislation on crypto market structure, which has also received broad bipartisan support and is expected to be discussed in depth in the Senate. Another clause opposing CBDC further indicates that the United States will actively participate in the global digital currency competition by regulating the US dollar stablecoin.
How the GENIUS Act won bipartisan support amid major political friction
Laura:
As you mentioned, the bill did receive broad support in the end. However, as it progressed, we also saw a lot of opposition from the Democratic Party to the Trump administrations cryptocurrency-related business activities, especially World Freedom Finances move to launch its own stablecoin.
I wonder how the Democrats were persuaded to vote for this bill in larger numbers, since it didnt seem likely at this early stage.
Dante:
First, let me be frank: crypto legislation has become a bipartisan issue in the United States. This makes me joke that I have helped unite Washington twice in my career. The first time was when the Libra project was launched, Republicans and Democrats agreed to oppose the project, which led to many hearings and disputes. Nevertheless, this opposition led to an unexpected unity between the two parties.
Back to today, the bill has gone through a lot of hearings, interagency meetings, and public consultations. The Biden administration issued an executive order on digital assets, while the Trump administration took a sincere and growth-oriented whole-of-government approach to promote the development of related technologies, especially in the field of artificial intelligence. However, without properly addressing these key interests, including potential political differences, it would be difficult for the GENIUS Act to obtain the support of 18 Democratic senators in the Senate, let alone achieve such a significant success in the House of Representatives. Therefore, this is undoubtedly an important victory.
The key takeaway for us is that the crypto industry is finally getting the legitimization it has long desired, a clear path forward in U.S. law and regulation, and the opportunity to compete.
Why Dante thinks the bill has implications beyond crypto
Laura:
Circle is widely considered to be one of the biggest winners from this bill. So what are the specifics of this bill in terms of what types of companies are regulated? Which companies are included and which are excluded? Obviously, certain companies are able to legally conduct stablecoin-related businesses in the United States, while others need to meet higher standards to enter this field. Can you briefly explain the impact of this bill on different types of players and how it changes their operating models?
Dante:
First of all, I think the GENIUS Act is about much more than cryptocurrency itself. This may be the first financial regulatory bill in American history that aims to promote growth, competition, and protect consumers. Its core is to establish clear rules for the market and build a rules-based competitive environment. I am very happy to share some of the unique features of this bill.
First, it preserves states’ regulatory authority over banks and payments, which has been a significant obstacle in past attempts to legislate stablecoins. The U.S. financial system is characterized by “fintech federalism,” where states independently regulate banks and payments. The GENIUS Act respects and continues this tradition. In addition, under the bill, banks, non-bank institutions, and credit unions can issue U.S. dollar-denominated payment stablecoins with a scale of $1 billion or more. These entities need to be included in the federal regulatory framework, primarily supervised by the U.S. Office of the Comptroller of the Currency (OCC), while also promoting the possibility of international competition.
The bill also contains many subtle provisions, such as provisions on international product portability, ensuring that products that comply with similar regulatory structures in other countries can flow freely between the United States and abroad. Among them, the so-called Libra Clause is worth noting. According to this clause, if a non-bank or commercial company wants to issue stablecoins, or products that may be classified as Vanity Stablecoins (TechFlow Note: Vanity Stablecoin is an emerging stablecoin concept that is mainly used to meet the customized needs of individuals or brands. It allows users to create stablecoins with unique identifiers based on their preferences or identities, usually based on blockchain technology.), they will not only need to set up an independent entity (similar to Circle, not a bank), but also must resolve a series of competition law issues and ultimately obtain approval from the Treasury Special Committee. This establishes an important protection mechanism for the market, while also raising the entry barrier. For banks, if they plan to issue stablecoins under the GENIUS Act, they must set up independent entities, separate from core banking operations, and manage the issuance and redemption of stablecoins in a completely different way, rather than operating like traditional banks manage loans and credit creation. This regulatory approach is even more conservative than the so-called deposit token era.
This also raises an important question: Are banks willing to adopt a conservative asset-liability management strategy, not taking risks, not using leverage, not making loans, and focusing only on the issuance of stablecoins? Or, are they more willing to participate in the competition in this market segment by providing core banking services? Overall, this bill sets clear rules for the market, and I think the biggest winners in the end are American consumers and market participants, while also further consolidating the position of the US dollar in the global economy.
How Circle plans to compete with banking giants
Laura:
Lets talk about the big banks moves again. This week Bank of America, JPMorgan Chase, and Citigroup are all working to launch stablecoins, or at least considering it. While the bill doesnt fully cover the actions of these banks, they do operate in the same space as Circles business. JPMorgan Chase also plans to launch a deposit token. Currently, Circles USDC is mainly used for trading and decentralized finance (DeFi), and has become its largest business partner through its partnership with Coinbase. In addition, USDC will also be used by millions of Shopify merchants on Coinbases Base network.
So, at the moment Circle is more of a crypto-native project, and these banks have a larger distribution among non-crypto users, which is obviously a bigger market. So, how does Circle compete with these big banks?
Dante:
Thats an interesting question. I think thats been true in the discussion of competing digital currencies between banks, non-banks and even central banks, our operating model and long-term belief is that once very clear rules of the road are established, tokenized forms of money are not the breakthrough, in fact, the technical breakthrough in banking and payments is in infrastructure.
Our long-term vision is to build an Internet-based financial system that interconnects global funds and financial services through blockchain technology. As you know, USDC is a multi-chain innovation that aims to promote interoperability between different blockchains. It is committed to building a trusted financial infrastructure that can bring funds and financial services to areas that traditional banks and payment systems cannot reach.
This is not a strategy to oppose banks. In fact, our strategy relies heavily on working with banks to leverage the trust and security they have built in the real economy. The introduction of the GENIUS Act will undoubtedly trigger competition on multiple levels, which is a positive driving force for the US economy and the entire market category. At the same time, it is also the best way to ensure that digital assets and cryptocurrencies can achieve large-scale adoption, because all of this requires full interoperability with the traditional financial system.
Another key point is that before the GENIUS Act, the United States had been lacking a clear framework for the regulation of cryptocurrencies and non-bank payment systems. Take the Libra project as an example. Due to the lack of relevant laws in the United States, Libra eventually chose to be established in Switzerland because Switzerland was able to regulate it as a financial infrastructure. The implementation of the GENIUS Act provides the United States with an America First institutional framework while avoiding the limitations of America Alone. This allows companies like Circle, as well as other American companies including traditional banks, to compete in the global market without worrying that their business models or Internet-based digital dollars will be restricted by the rules of other countries. This is particularly important because the competition between stablecoins and central bank digital currencies (CBDCs) is increasingly becoming a focus in the global financial field. Discussions over the past week have shown that many countries and financial institutions are trying to get rid of their dependence on the US dollar while looking for alternative payment systems.
Laura:
OK, I want to confirm one of your points. I thought this bill was mainly aimed at domestic business activities in the United States, but from your description just now, it seems that it may also have an impact on the use of stablecoins in other countries?
Dante:
Exactly. This is actually an important provision in the GENIUS Act, which was originally introduced in the House. You may remember that there was a different approach to stablecoin legislation between the House and the Senate. The bill that was introduced in the House was called the Stability Act, and the bill that was introduced in the Senate was the GENIUS Act.
In the end, the GENIUS Act absorbed many of the improvements in the House version and was supported by 102 Democratic members. The most important point is the concept of international reciprocity, which gives the U.S. Treasury the power to promote the U.S. regulatory framework globally. This is crucial because it ensures that the United States can take the lead in the formulation of international rules rather than passively accept the rules of other countries. This applies not only to cryptocurrencies, but also to the global use of stablecoins. For me personally, this is also an important milestone. Throughout my career, I have often represented the interests of the United States in international institutions and government-bank meetings, and although I am a representative of the private sector, this time the United States can finally have a formal say in the formulation of these rules.
What Circle hopes to achieve by applying for a national trust bank charter
Laura:
At the end of June this year, Circle submitted an application to create a national trust bank in the United States. This will enable Circle to directly manage its own reserves and provide cryptocurrency custody services to institutional clients. Please give us more details about Circles plans for this national trust bank.
Dante:
Yes, custody and guarantee services are part of our plan. In addition, with the implementation of the GENIUS Act, non-bank stablecoin issuers in the United States must obtain a charter and a trust license from the Office of the Comptroller of the Currency (OCC). Therefore, this move is clearly a move to prepare for future regulatory requirements. This strategy is not surprising, as it is consistent with how we operate under the European Markets and Crypto-Assets Regulation (MiCA) framework.
Our business goal has always been to strive for excellence. When Europe spent several years developing the MiCA framework, we realized that we had to have a presence in Europe. To this end, we chose France and obtained an e-money license while ensuring that Circles USDC and euro stablecoins became the first products to comply with MiCA regulations. Therefore, it is logical for us to adopt a similar model as relevant regulations in the United States are improved.
Laura:
I also want to ask a question about competing with big banks. Fortune recently reported that JPMorgan Chase plans to charge fintech companies for using its data. Suppose there is a fintech company, such as Plaid, which is responsible for connecting Coinbase (your largest partner) with customer banks. If the bank is JPMorgan Chase, then the originally free data interface may start charging. Do you think this change will hinder the development of Circle? If a similar bank charging situation occurs, how will Circle respond?
Dante:
This is indeed a complex issue, and it is difficult to predict the specific impact at this time. However, one thing is clear, the legality of using money has been controversial for many years, which is one of the reasons why I joined this industry. I have always believed that the right to use money should be as free as possible.
In addition, the payment method of the traditional banking system is similar to the era of wired telephones, where the longer the call time, the higher the fee. Therefore, in the future, many companies may compete around data and regard data as an asset. In this era where data is called new oil, can blockchain become a new tool to carry this data? This is a question worth pondering.
Why Financial Privacy Is So Important in the American System
Dante:
The need for financial privacy in American society is deeply rooted, which is one of the main reasons for opposing central bank digital currencies (CBDCs). However, it is not easy to truly protect financial privacy. Only by establishing clear rules and a fair competition system can complete financial services be provided to users safely and privately. Crypto wallets play an important role in this process. They can provide users with secure tools for storing and managing cryptocurrencies while protecting personal privacy.
Currently, stablecoins are achieving this goal through the US dollar, and mobile digital wallets, open source wallets, and blockchain infrastructure together support this competitive system, enabling it to fully cover every user. In a world after the passage of the GENIUS Act, consumers will have more choices to enjoy financial services while protecting their privacy. If some large institutions try to compete by monetizing data, the implementation of the GENIUS Act will provide consumers with alternatives without sacrificing their privacy.
How deposit tokens differ from stablecoins
Laura:
The topic of deposit tokens has recently gained attention, and I didnt know much about this concept before. Each unit of a deposit token represents a portion of a bank deposit. So, how does it differ from the use of stablecoins? Do deposit tokens have the potential for widespread application? In what scenarios might it be used? Is it in competition with stablecoins, or is it just different in use? How should consumers view the two?
Dante:
This question is indeed a bit complicated. As a supporter of the movement against central bank digital currencies (CBDCs), I have done in-depth research on this and used some academic papers to support my views. There are indeed certain similarities between deposit tokens and stablecoins. The GENIUS Act allows banks to issue payment stablecoins, but stipulates that payment stablecoins issued by banks are the only legal products. The Act puts forward some key requirements for the legislation of payment stablecoins.
If I were a board member of a large bank, I would focus on the following issues: First, the issuer cannot pay the proceeds directly, which means that this digital currency does not compete with traditional deposit business, but is a fully reserved form of digital currency. This also raises a question-if the deposit token is issued by a failed bank (such as Credit Suisse), would you accept it? Because if the deposit token fails to comply with the provisions of the GENIUS Act, it may become a digital representation of the banks balance sheet risk. This means that your right to redeem dollars at par may be affected by factors such as loans, credit risk, and term risk in the banks balance sheet. Therefore, the GENIUS Act requires banks to issue stablecoins through independent entities and independent balance sheets to ensure their security.
In addition, the GENIUS Act also completely puts an end to the era of stablecoins that were not worthy of their names in the past. For example, cases like Terra Luna can no longer be traded in the US market. If the issuer of a stablecoin fails to prove the authenticity of its assets (i.e., pass the Jerry Maguire test. TechFlow Note: This is a common metaphor in the field of entrepreneurship, investment or product development, which comes from the classic movie Jerry Maguire. The protagonist lost most of his customers because of his insistence on his ideas, but eventually won a loyal customer. Here, it can be understood that the Jerry Maguire test is a key step in verifying market demand and early ecological support, and is an important indicator of whether stablecoins can gain a foothold in the highly competitive blockchain ecosystem.), they may even face criminal penalties. The GENIUS Act imposes strict requirements on trust, transparency and auditability, and imposes criminal liability on relevant persons in charge. This ensures that crypto-dollar counterfeits will no longer appear in the name of stablecoins and eventually collapse.
What Circle might do when interest-bearing stablecoins are finally approved
Laura:
I know that stablecoins are inherently centralized, but its nothing like Terra Luna. However, I want to talk about stablecoins that carry interest. Obviously, the law currently doesnt allow for this, and thats not entirely in the interest of consumers. In some ways, its even a little bit perverse because the law was actually pushed by the Democrats. However, its a boon for Circle and companies like it. I understand that the law wont change anytime soon, but in the future, when consumers realize that this rule is not friendly to them, it may drive policy changes. If the law allows stablecoins that carry interest, Circle may need to attract more customers through competition, such as offering returns to consumers. While this may not be your focus right now, I think this may happen in the future.
Dante:
We have indeed thought about this issue. Let me share our views. The full-reserve stablecoin model solves a core problem in the early days of cryptocurrency - consumer regret caused by price fluctuations. Due to its drastic price fluctuations and appreciation, Bitcoin has gradually lost its function as an Internet medium of exchange and has been defined as digital gold rather than an asset for daily consumption. For example, the Bitcoin Pizza Day event is a typical case, which has spawned the demand for a fully-reserve stable asset. This asset is not only a pricing mechanism for crypto transactions, but also an important medium of exchange for the Internet economy.
Currently, both MiCA and the GENIUS Act prohibit stablecoin issuers from paying yields directly to token holders, but we believe that yields are a key feature of cryptocurrencies. Through the secondary market, DeFi and lending functions related to programmable money can realize yields. The GENIUS Act prohibits regulated issuers from paying yields directly, but yields, as a secondary market innovation, are one of the core functions of this field. Just as physical dollars create loans and credits on bank balance sheets, fully-reserve stablecoins have become an important foundational layer for the Internet economy. Unlike traditional funds, consumers can enjoy other advantages of funds, such as liquidity that is not affected by bank holidays, programmability, composability, and the flexibility of DeFi. These advantages will not be realized if the funds themselves are not fully-reserve types or are at risk. This is why we support the GENIUS Act and MiCA, which have become the legal basis for stablecoins in Europe and the United States.
In addition, the United States needs further crypto market structure regulation to address other issues in the market, such as how to define commodities, securities, and digital collectibles, and how to deal with comprehensive economic activities across banking, payment regulation, and capital markets. I believe that innovation in the secondary market and the income function of stablecoins will usher in new development opportunities in this area.
Laura:
I have a few more questions about Circles recent IPO. The stock was trading around $234 as of an hour ago, well above the IPO price of $31.
Im curious about what the vibe has been like for the company since the IPO, because I think, at least in the crypto space, there can be a gap between pre-IPO expectations and actual results. Is that how you feel, too? Or is that a shock to you?
Dante:
Unfortunately, I cant answer this question for Circle as a whole. I cant say much about the stock price or the IPO itself, but becoming a public company has always been a long-term goal for Circle. As a public company, we remain focused on the core principles that drive the company, which is long-term development. Thats probably the most I can share.
But I think the real news headline right now is the GENIUS Act. In fact, Im on my way to the White House right now to attend a signing ceremony for a law that I personally have invested a lot of effort in. This moment is not only great for the company, but also for the country and the market as a whole because we finally have legal clarity in the United States.
How this new law may affect ordinary Americans and their money
Laura:
Last question. If we look five years ahead, how do you think this law will affect the lives of ordinary Americans, consumer rights, and Americas position in the world?
Dante:
I wrote an article titled When blockchain is no longer a topic, how we can use it to change the world. This article was published thanks to you, Laura Shin, who was the editor of Forbes at the time and gave me this opportunity. I believe that the GENIUS Act and the upcoming US market structure regulation bill will gradually move cryptocurrency and blockchain technology from obvious applications to deeper infrastructure, and their impact will gradually become apparent.
I hope that in the next five years, we will not only be able to consolidate the dollars position as the core currency of the Internet economy and use it as a strategic advantage for the United States in global competition, but also allow more people to enjoy safe and reliable financial services based on smart devices. These services include not only simple payment functions, but also complex financial activities such as savings, loans, and credit, bringing greater convenience and benefits to consumers. Therefore, the United States has officially entered this field.
Just yesterday, I attended a global meeting with about 40 to 50 international regulators and central bankers. This is the first time in my seven years of working in this field that I can confidently say that the United States is developing a legal framework for the cryptocurrency and blockchain industry and is no longer relying solely on the private sector to represent the country.
