Circle Pushes UK to Merge EU and US Stablecoin Frameworks

TLDR

Circle policy chief Dante Disparte urged the UK to combine MiCA clarity with the US GENIUS Act framework.
Disparte told the House of Lords that a hybrid model can support innovation and consumer protection.
He warned that the absence of regulation could push stablecoin activity offshore and expose UK users to risks.
Disparte proposed 1-to-1 reserve backing and high-quality liquid assets for stablecoin issuers.
He called for enforceable redemption rights and strong transparency standards within the UK framework.

Circle’s policy chief Dante Disparte urged UK lawmakers to combine European and US crypto rules. He addressed the House of Lords Financial Services Regulation Committee on Wednesday. He said the UK should merge MiCA clarity with the new US stablecoin framework.

Circle Calls for Hybrid Model Based on MiCA and US Law

Table of Contents

Disparte told the committee that the UK can shape a distinct crypto regime. He said lawmakers should combine clear EU definitions with US governance standards.

He stated, “The model is clear: take the best of both and make it distinctly British.”

He explained that Europe offers clarity on licensing, definitions, and consumer safeguards. He added that the US GENIUS Act provides strong governance and protection standards. He said the UK can align these features into one framework.

Disparte warned that regulatory gaps will push stablecoin activity offshore. He said that offshore activity could expose UK users to higher risks. He also said that London risks losing ground as a financial innovation hub.

The committee session formed part of a wider inquiry into stablecoin growth. Lawmakers scheduled Disparte and Mastercard executive Jesse McWaters as witnesses. The inquiry focuses on the proposed UK regulation for stablecoins.

The Financial Conduct Authority has consulted on a broader crypto regime. The framework is expected to take effect on Oct. 25, 2027. Firms conducting regulated activities will need FCA authorization from that date.

Circle Outlines Reserve Standards for USDC Stability

Disparte addressed concerns about bank deposits and credit markets. He rejected claims that stablecoins threaten traditional banking services. He said, “The future is not banks versus stablecoins.”

He argued that clear rules can manage liquidity and reserve risks. He proposed four governing principles for the UK framework. He called for 1-to-1 reserve backing and high-quality liquid assets.

He also urged enforceable redemption rights for holders. He requested strict transparency standards for issuers. He said these measures can support innovation and financial stability.

Circle issues USDC, the world’s second-largest stablecoin by market value. USDC trades at about $1 and operates across multiple blockchains.

Disparte said, “Our growth across currencies and jurisdictions is proof that trusted stablecoins expand markets.”

The US enacted its federal stablecoin framework on July 18, 2025. The President signed the GENIUS Act into law on that date. The European Union implemented MiCA rules for service providers on Dec. 30, 2024.

Mastercard’s McWaters also addressed the committee during the session. He said stablecoins lack a clear value proposition over domestic payment options. However, he praised blockchain rails for cross-border speed.

He stated, “Blockchain technology provides a new and potentially additive way of moving money.” He said this benefit appears strongest in cross-border payments. The House of Lords committee continues its inquiry into UK stablecoin regulation.

✨ Limited Time Offer