Circle releases stablecoin regulatory framework, emphasizes advantages of coexisting with CBDCs, plans to launch in Q4 regardless of market conditions.

The issuer of USDC, Circle, has released a stablecoin regulatory framework and submitted it to the White House as a reference bill for regulating stablecoins in the United States. Meanwhile, Circle's CFO, Jeremy Fox-Geen, stated in an interview that they plan to proceed with the listing in the fourth quarter of this year regardless of market conditions.

Key Focus: Stablecoins Driving Competition in the Financial System

As U.S. regulators continue to emphasize their intention to regulate stablecoins, Circle has taken the lead by providing a set of 19 relevant regulations for potential stablecoin oversight, released by Circle's Chief Strategy Officer Dante Disparte here.

The emergence of #Stablecoins (noting that not all are created equal) has triggered an important global policy and regulatory conversation. With a front row seat in this work since 2019, I'm pleased to share @circlepay's stablecoin policy principles.https://t.co/GGPFBgJ0AL

— Dante Disparte (@ddisparte) July 18, 2022

Unsurprisingly, the emphasis lies on how "non-bank issued" digital dollars can promote fair competition within the financial system. The key points are summarized as follows:

• All forms of money should be free to use.
• Dollar digital currencies/stablecoins and digital cash are bearer instruments, meaning holders have the right to redeem one dollar even if the issuer goes bankrupt.
• Stablecoins should be designed with privacy protections in mind, while also possessing transparency, accountability, and risk disclosure.
• Dollar digital currencies issued by banks and non-banks serve different functions and promote fair competition within the financial system.
• Regulations for stablecoins should provide a regulatory, risk, and operational framework for multiple issuers simultaneously.
• Promoting the digitization of community banks and credit unions.
• Compliance with AML, CFT, KYC, and other financial regulations.
• Standardization will give confidence to households, companies, and financial institutions to integrate and use stablecoins in daily transactions.

The article also mentions the EU's crypto legislation MiCA Markets in Crypto Assets, the impact on privacy in the crypto asset market, emphasizing the need for the U.S. to take the lead, coordinate, and establish stablecoin standards.

Expected to Go Public in the Fourth Quarter

Foreign media outlet Decrypt interviewed Circle's CFO Jeremy Fox-Geen. The recent frequent appearances of the USDC issuer are aimed at clarifying related collapse rumors, while USDT's market share has been getting closer since the Terra collapse, perhaps presenting an opportunity for Circle to overtake.

Rumors mainly claim that Circle pays interest to crypto banks to encourage institutional adoption of USDC, and as a result, Circle has been in a loss-making state for years.

Fox-Geen refuted the claims, stating that even if Circle had similar agreements with banks, all public filings submitted to the SEC should have records and disclosures, making such rumors baseless.

Circle signed a SPAC listing plan with Concord Acquisition Corp. last year, aiming to go public, as reported here. Fox-Geen mentioned that they are currently undergoing a joint review process with the SEC and expect to complete it at some point in the fourth quarter.