Circle asks SEC for clarity on stablecoin settlement
The issuer’s comment letter proposes treatment for qualifying payment stablecoins under a pending crypto-assets rule.
Circle said it submitted comments on October 20 on the SEC’s proposed Regulation Crypto Assets. The company supports a technology-neutral framework and asks the regulator to explain how qualifying payment stablecoins could be used as consideration and for settlement.
Its letter asks that qualifying stablecoins be treated as cash for a proposed rule and receive appropriate valuation, accounting and customer-reserve treatment. Circle also proposes changes to broker-dealer treatment subject to safeguards. These are requests from a market participant, not adopted rules.
For tokenized securities teams, the treatment of the settlement asset can affect custody, accounting and operational design. Builders should follow the final rule and applicable legal advice instead of assuming the requested treatment will be granted.