According to Crowdfund Insider, the stablecoin issuer Circle submitted feedback on the Financial Stability Board's (FSB) crypto asset regulatory framework peer review. Circle emphasized that differences in national regulations could impair the global interoperability of digital currencies, suggesting the adoption of unified global standards.
As the issuer of USDC and EURC stablecoins, Circle pointed out the main challenges currently faced, including: regional requirements for local reserve fund management may lead to liquidity fragmentation; overly strict redemption time limits might exacerbate liquidity risks under market pressure; inconsistent anti-money laundering (AML) standards across jurisdictions increase compliance costs.
Circle called on regulators to adopt a risk-based regulatory approach that maintains financial stability while preserving the global interoperability and operational efficiency of stablecoins. The company believes that a clear and consistent regulatory framework can support innovation without compromising financial stability.
