Circle seeks SEC approval to treat stablecoins as cash in proposed regulations

Circle, the US-based issuer of the USDC stablecoin, has formally requested that the Securities and Exchange Commission (SEC) clarify how qualifying payment stablecoins should be treated under its proposed crypto-asset regulatory framework. The company submitted a detailed comment letter advocating for stablecoins to be classified as cash for specific regulatory calculations and allowed as settlement assets in tokenized transactions. In its letter, Circle asked the SEC to align its new Regulation Crypto Assets proposal with current payment stablecoin regulations, including the GENIUS Act.