Circle policy chief Dante Disparte told a UK House of Lords committee that Britain has a chance to design a distinctly British crypto regime by blending the EU’s Markets in Crypto-Assets Regulation (MiCA) clarity with elements of the United States’ new stablecoin framework. He urged the UK to adopt Europe’s definitions, licensing and governance standards while incorporating strong U.S.-style consumer protections and parts of the GENIUS Act.
Speaking to the House of Lords Financial Services Regulation Committee during its inquiry into stablecoin growth and regulation, Disparte argued the practical model is straightforward: “take the best of both and make it distinctly British.” He warned that failure to establish clear domestic rules would push stablecoin activity offshore, raising risks for UK users and undermining London’s status as a global financial innovation hub.
Disparte stressed that regulation should not force a binary choice between banks and stablecoins. Instead, a transparent framework combined with robust reserve and liquidity requirements and incentives for bank participation can reduce risks without stifling innovation. He said Circle’s expansion across currencies and jurisdictions shows trusted stablecoins expand markets rather than shrink them.
To anchor UK policy, Disparte proposed four core principles: 1) 1:1 reserve backing, 2) high-quality liquid reserves, 3) enforceable redemption rights for holders, and 4) strong transparency standards. Circle issues USDC, currently the world’s second-largest stablecoin by market capitalization.
Mastercard policy executive Jesse McWaters also gave evidence to the committee. He said stablecoins do not yet present a clear value proposition that would displace payment cards for consumers, but he praised blockchain rails for speeding cross-border transfers and called stablecoins an innovative, potentially additive way to move money internationally.
Regulatory context: 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. The U.S. federal stablecoin framework, the GENIUS Act, was signed into law on July 18, 2025, and the EU’s MiCA regime became effective for crypto-asset service providers on Dec. 30, 2024.
Disparte framed the UK opportunity as pragmatic and competitive: combine MiCA’s definitional and licensing certainty with U.S.-style consumer protections to produce a regime tailored to the UK market, preserve London’s competitive edge, and reduce the incentive for activity to migrate offshore.