Circle’s policy chief Dante Disparte told a UK House of Lords committee that Britain can craft a crypto regime by blending the European Union’s Markets in Crypto-Assets Regulation (MiCA) clarity with parts of the United States’ new stablecoin framework. “The model is clear: take the best of both and make it distinctly British,” Disparte said at a House of Lords Financial Services Regulation Committee meeting, urging the UK to adopt Europe’s definitions, licensing and governance alongside strong U.S.-style consumer protections and elements of the GENIUS Act.
Disparte warned that without a clear domestic framework, stablecoin activity will shift offshore, increasing risks for UK users and undermining London’s role as a global financial innovation hub. His testimony was given as part of the Lords’ inquiry into stablecoin growth and proposed regulation, where Mastercard’s Jesse McWaters also appeared.
The Financial Conduct Authority has been consulting on a wider crypto-assets regime expected to take effect on Oct. 25, 2027, when firms conducting newly regulated activities will need authorization.
Addressing concerns that stablecoins could drain bank deposits and reduce demand for traditional credit, Disparte said the debate should not be framed as “banks versus stablecoins.” He argued that a transparent regulatory framework, combined with robust reserve and liquidity standards and encouragement of bank participation, can mitigate risks without stifling innovation. “Our growth across currencies and jurisdictions is proof that trusted stablecoins expand markets. They do not shrink them,” he added.
Disparte proposed four principles to anchor UK rules: 1-to-1 reserve backing, high-quality liquid reserves, enforceable redemption rights and strong transparency standards. Circle issues USDC, the world’s second-largest stablecoin by market capitalization.
The U.S. federal stablecoin framework, the GENIUS Act, was signed into law on July 18, 2025. The EU’s MiCA regime, the first comprehensive crypto regulatory framework, came into effect for crypto-asset service providers on Dec. 30, 2024.
Mastercard’s McWaters said stablecoins do not currently offer a clear value proposition that would displace payment cards for customers, though he praised blockchain rails for speeding cross-border transfers. He described stablecoins as an innovative and potentially additive way to move money, especially internationally.
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