Circle urges UK blend MiCA and US stablecoin rules

Circle’s policy chief Dante Disparte has urged the United Kingdom to combine elements of the EU’s MiCA framework and the US GENIUS Act to create a competitive domestic crypto regulatory regime.

Speaking to the House of Lords Financial Services Regulation Committee, Disparte said the UK has a unique opportunity to build a “distinctly British” framework by merging regulatory clarity with strong consumer protections.

“The model is clear: take the best of both and make it distinctly British,”

Said Circle policy chief, Dante Disparte.

Disparte warned that failing to implement clear rules could drive stablecoin activity offshore, increasing risks for UK users while undermining London’s position as a global financial hub.

He also argued that properly regulated stablecoins could expand financial markets rather than compete directly with banks, provided strict reserve backing, transparency and redemption standards are enforced.

The UK Financial Conduct Authority is currently consulting on a broader crypto framework expected to take effect in 2027, which would require firms to obtain authorisation for regulated activities.

Meanwhile, Mastercard’s Jesse McWaters said stablecoins currently lack a strong consumer use case compared with existing payment systems, though he acknowledged their potential to improve cross-border transactions.