- Circle denies reports of seeking U.S. banking license.
- Circle urges clear U.S. stablecoin legislation, rejects banking status.
Circle, one of the world’s largest stablecoin issuers, has officially denied recent reports that it is seeking a U.S. federal bank charter. Chief Strategy Officer and Head of Global Policy Dante Disparte released this announcement to explain Circle’s stance as regulators and media outlets intensified their scrutiny.
Circle Pushes for Stablecoin Legislation, Rejects Banking License Rumors
The Wall Street Journal recently announced that U.S. crypto operations, including Circle and BitGo had initiated preparations to file for banking licenses in the United States. The sources noted that these firms sought enhanced connections with United States banking institutions. Circle officially stated that its institution would not pursue a banking license acquisition.
On April 25, Disparte published a post through his X (formerly Twitter) profile to clarify the matter. He declared that Circle will not transform into any form of bank, alongside refusing to establish insured depository institutions. He clarified that the company plans to follow payment stablecoin regulations, which will become effective in the near future. The forthcoming regulations could force Circle to apply for registration either as a federal or state trust charter entity or a nonbank license institution.
Disparte declared that Circle upholds its commitment to following established laws. He asked members of Congress to carry out the swift passage of bipartisan stablecoin legislation. From his perspective, regulatory clarity is fundamental for supporting innovation and market stability and consumer protection in America.
Even though Circle makes this announcement, the transformation of crypto companies into traditional financial institutions continues to be a subject of ongoing analysis and discussion. Many crypto firms lost their access to the U.S. financial system during 2022 when FTX collapsed and was followed by Silvergate and Signature banks ceasing operations. The connection between crypto and traditional finance experienced a major deterioration.
However, the landscape is evolving. Several large crypto companies work to establish entry into banking services without necessarily converting into banking institutions. Traditional banking institutions are now researching setting up crypto-related services because they aim to satisfy rising customer needs in the market. This shows a renewed interest in bridging the gap between traditional finance and the digital asset world.
Circle Defends Against Bank Regulations
Meanwhile, the U.S. regulatory authorities are dedicated to creating new guidelines that will govern stablecoins. Earlier this month, the U.S. House Financial Services Committee chose to support a Republican-backed bill that introduced novel regulatory parameters for stablecoins. Washington is accelerating its response to stablecoins as the market continues to expand rapidly.
The current regulatory shifts have elevated Circle’s role in the sector. As Circle defends against bank legislation, it demonstrates its dedication to operating under stablecoin-specific governance instead of banking standards in the future.
Lastly, the statement from Circle makes it clear that they will not transform into a banking institution, even though rumors persist regarding crypto firms pursuing banking status. The company dedicates itself to compliance work, along with fostering cooperation and seeking regulatory clarity for its operations. The upcoming months require intense focus on U.S. stablecoin regulation because they will determine the destiny of companies like Circle alongside the entire crypto industry.
The post Circle Denies Seeking U.S. Banking License, Urges Clear Regulations appeared first on Live Bitcoin News.