WirepolicyDextape brief
Circle Asks SEC to Clarify Cash Treatment for Qualifying Payment Stablecoins
Circle’s comment letter asks the SEC to align its crypto-asset proposal with payment-stablecoin rules. The company’s requested treatment remains a policy position, not a Commission decision.
Dextape brief
Circle has asked the Securities and Exchange Commission to align its proposed crypto-asset offering framework with payment-stablecoin rules, according to a summary the company published on October 28 describing a comment letter filed October 20. The firm seeks cash treatment for qualifying payment stablecoins under a proposed rule and wants the broker-dealer haircut on them cut from 2% to zero, subject to safeguards. Circle also asks how these tokens can serve as consideration and settlement assets, and whether ongoing maintenance of a functioning blockchain network should be treated differently from the managerial work behind an offering. These are requests, not a Commission decision. A formal SEC action or revised proposal would be the next step.
Why it matters: The debate over how payment stablecoins are recognized in capital and settlement rules affects intermediary costs and the settlement plumbing of tokenized markets.
Read the full story
Dextape context
Built from Dextape’s own wire, stories and glossary.
Terms in this story
- Stablecoin
- A token designed to track a reference value, usually the US dollar, through reserves, crypto collateral or an algorithm.