Circle requests SEC recognize stablecoins as cash

Circle has submitted a formal request to the U.S. Securities and Exchange Commission (SEC) regarding proposed cryptocurrency fundraising rules. The USDC issuer is asking the regulator to recognize qualifying payment stablecoins as cash for payments and settlements under the agency’s framework.

Additionally, Circle is seeking to reduce the broker-dealer capital haircut for qualifying stablecoin positions from 2% to zero. The company argues that for dollar tokens redeemable one-for-one, the valuation should reflect the corresponding dollar amount.

Circle’s proposal suggests that the SEC coordinate its framework with the GENIUS Act, permitting only GENIUS-compliant payment stablecoins to be used as consideration or settlement assets. The company aims to establish a technology-neutral framework for on-chain capital formation while ensuring that accepting stablecoins does not subject issuers to the fundraising obligations of the companies using them.