GENIUS Act: Circle Seeks Clear Divide Between Payment Stablecoins and Tokenized Deposits
USDC issuer Circle has submitted a comment letter on the Office of the Comptroller of the Currency‘s (OCC) proposed rulemaking to implement the GENIUS Act. The stablecoin issuer also highlighted other core principles, such as a level playing field for all issuers, in its response to the OCC’s framework for the crypto bill. Circle Submits Comment Letter On OCCs Proposed GENIUS Act Framework In a blog post, Circle revealed that it had submitted comments to the OCC on its proposed rule implementing the GENIUS Act. The firm went further to highlight a number of technical areas of feedback in its comment letter, which it noted focus on core principles such as a clear distinction between payment stablecoins and tokenized deposits. The USDC issuer said that there should be no confusion between payment stablecoins and tokenized deposits. Circle said that they serve different purposes, which is why the OCC shouldnt treat them as interchangeable payments and settlement assets. Circle further noted that Congress has explicitly excluded tokenized deposits from the GENIUS Act because payment stablecoins are built for broad transferability and settlement. On the other hand, these tokenized deposits are digital representations of bank liabilities. “Tokenized deposits raise different questions that require their own regulatory