TechFlow news, April 7 — According to Crowdfund Insider, stablecoin issuer Circle has submitted feedback to the Financial Stability Board (FSB) regarding its peer review of the regulatory framework for crypto assets. Circle emphasized that regulatory divergence across jurisdictions could undermine global interoperability of digital currencies and recommended adopting unified global standards.
As the issuer of USDC and EURC stablecoins, Circle highlighted key challenges including: local reserve management requirements potentially fragmenting liquidity; overly strict redemption time limits possibly exacerbating liquidity risks under market stress; and inconsistent anti-money laundering (AML) standards across jurisdictions increasing compliance costs.
Circle urged regulators to adopt a risk-based regulatory approach that safeguards financial stability while preserving stablecoin interoperability and operational efficiency. The company believes clear and consistent regulatory frameworks can support innovation without compromising financial stability.
