According to Crowdfund Insider, Circle has submitted a response to the Financial Stability Board's (FSB) thematic peer review on the implementation of regulatory frameworks for global cryptocurrency activities. In this response, Circle emphasized the importance of developing local regulations to enable consumers to benefit from global stablecoins while minimizing potential risks to financial stability. Circle pointed out that differences in regulatory jurisdictions may force issuers to compromise the inherent global substitutability of digital currencies; Strict local reserve, capital, and redemption requirements may lead to fragmented liquidity and operational efficiency; The recognition of unified global standards and equivalent regulatory systems is crucial for avoiding market fragmentation; Risk based regulatory approaches are crucial for stablecoin issuers, providing flexibility without compromising financial stability.
Circle also pointed out that as the sole issuer of the major global stablecoins USDC and EURC, Circle emphasized that the regulatory framework "must maintain the substitutability of digital currencies"; When countries adopt vastly different requirements, issuers are either forced to compromise substitutability or "choose a regulatory regime," both of which could undermine the advantages of a globally interoperable payment system. Circle warns against adopting "extraterritorial requirements that undermine the global nature of stablecoins" and urges regulatory agencies to adopt common or equivalent standards or recognize regulated entities in foreign jurisdictions. By advocating for the adoption of common standards and equivalent recognition across jurisdictions, Circle emphasizes that the future of global digital payments "depends on regulatory cooperation and clarity".
