PANews reported on April 7 that according to Crowdfund Insider, Circle has submitted a response to the Financial Stability Board (FSB) on the special peer review of the implementation of the regulatory framework for global crypto asset 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 jurisdictional differences in regulation may force issuers to undermine the inherent global fungibility of digital currencies; strict local reserve, capital and redemption requirements may fragment liquidity and operational efficiency; unified global standards and recognition of equivalent regulatory regimes are essential to avoid market fragmentation; risk-based regulatory approaches are essential for stablecoin issuers and can provide flexibility without undermining financial stability.
Circle also pointed out that as the only issuer of major global stablecoins USDC and EURC, Circle emphasized that the regulatory framework "must maintain the fungibility of digital currencies"; when countries adopt widely different requirements, issuers are either forced to compromise fungibility or "choose a regulatory regime", both of which may undermine the advantages of a global interoperable payment system. Circle warned against "extraterritorial requirements that undermine the global nature of stablecoins" and urged regulators to adopt common or equivalent standards or recognize regulated entities in foreign jurisdictions. By advocating for common standards and equivalent recognition among jurisdictions, Circle emphasizes that the future of global digital payments "depends on regulatory cooperation and clarity."
