Compiled | TechFlow
Guest | Dante Disparte, Chief Strategy Officer and Head of Global Policy and Operations at Circle
Host | Laura Shin
Key Points Summary
After years of hostile attitudes, the United States has finally passed its first federal law regarding the crypto industry.
The stablecoin legislation, the GENIUS Act, supported by both parties, was signed into law by President Trump after a last-minute confrontation in Congress. Although the bill was considered a "done deal," its passage this week became turbulent, with Democrats objecting due to Trump's connections to cryptocurrencies, and the Freedom Caucus suddenly rising in opposition to the provisions on central bank digital currency (CBDC).
Now that the bill has passed, what impact will it have? Who will benefit or be harmed?
In this episode, Circle's Chief Strategy Officer Dante Disparte - one of the key figures behind this legislation, explains the following:
· How the bill won bipartisan support amid political tensions
· Why banks might think twice before issuing stablecoins
· Why Circle is applying for a national trust bank license
Additionally, the program discusses the controversy surrounding interest-bearing stablecoins, how this bill fits into the broader financial regulatory system, and whether U.S. consumers and the dollar will benefit.
[The translation continues in this manner for the entire text, maintaining the specified translations for specific terms and preserving any HTML tags.]Why Dante Believes the Bill's Significance Transcends Cryptocurrency Itself
[The entire text has been translated to English, maintaining the specified translations for specific terms. Here's a snippet of the translation to demonstrate:] Laura: Currently, people generally believe that Circle is one of the biggest winners of this bill. So, what specific provisions does this bill have for regulating what types of companies? Which companies are included, and which are excluded? Clearly, some companies can legally conduct stablecoin-related business in the United States, while others need to meet higher standards to enter this field. Can you briefly explain the impact of this bill on different types of participants and how it changes their operational models? Dante: First, I believe the GENIUS Bill's significance goes far beyond cryptocurrency itself. This might be the first financial regulatory bill in US history aimed at promoting growth, competition, and consumer protection, with its core focus on establishing clear rules for the market and creating a rule-based competitive environment. I'm happy to share some unique aspects of this bill. [The translation continues in this manner, preserving the specified translations and maintaining the professional tone of the original text.]Dante: Yes, custody and guarantee services are part of our plan. Moreover, with the implementation of the GENIUS Act, non-bank stablecoin issuers in the United States must obtain a franchise license and trust license from the Office of the Comptroller of the Currency (OCC). Therefore, this move is clearly preparing for future regulatory requirements. This strategy is not surprising, as it is consistent with our operations in the European market under the Markets in Crypto-Assets (MiCA) framework.
Our business goal has always been to pursue excellence. When Europe spent years developing the MiCA framework, we realized we must establish a branch in Europe. For this, we chose France and obtained an electronic money license, ensuring that Circle's USDC and Euro stablecoin became the first products compliant with MiCA regulations. Therefore, adopting a similar model as US regulations are refined is logical.
Laura: I also want to ask a question about competing with large banks. Fortune recently reported that JPMorgan plans to charge financial technology companies for using its data. Suppose there's a financial technology company, like Plaid, responsible for connecting Coinbase (your largest partner) with customer banks. If that bank is JPMorgan, the previously free data interface might start charging fees. Do you think such a change would hinder Circle's development? How would Circle respond if banks start charging similar fees?
Dante: This is indeed a complex issue that is currently difficult to predict specifically. However, one thing is clear: questions about the legality of money usage have been controversial for years, which is one of the reasons I entered this industry. I have always believed that the right to use money should be as free as possible.
Moreover, payment methods in the traditional banking system are similar to the era of landline phones, where longer call times mean higher fees. In the future, many companies may compete around data, viewing it as an asset. In this era where data is called the "new oil", can blockchain become the "new tool" to carry these data? This is a question worth pondering.
Why Financial Privacy is So Important in the US System
Dante: The need for financial privacy is deeply rooted in American society, which is also one of the main reasons for opposing Central Bank Digital Currencies (CBDCs). However, truly guaranteeing financial privacy is not easy. Only by establishing clear rules and a fair competitive system can complete financial services be safely and privately provided to users. Crypto wallets play a crucial role in this process, providing users with secure tools to store and manage cryptocurrencies while protecting personal privacy.
Currently, stablecoins are achieving this goal through the US dollar, and mobile digital wallets, open-source wallets, and blockchain infrastructure collectively support this competitive system, comprehensively covering every user. In a world after the GENIUS Act, consumers will have more choices, enjoying financial services while protecting their privacy. If some large institutions try to compete by monetizing data, the implementation of the GENIUS Act will provide consumers with alternatives without sacrificing their privacy.
Differences Between Deposit Tokens and Stablecoins
[The translation continues in the same manner for the rest of the text, maintaining the specified translations for specific terms like 'TechFlow', 'Circle', etc.]Currently, MiCA and the GENIUS Act prohibit stablecoin issuers from directly paying yields to token holders, but we believe yields are a key feature of cryptocurrencies. Through secondary markets, DeFi and lending functions related to programmable money can generate yields. The GENIUS Act prohibits regulated issuers from directly paying yields, but yields as a secondary market innovation are one of the core functions in this field. Just as physical US dollars create loans and credit on bank balance sheets, fully reserved stablecoins have become an important infrastructure layer for the internet economy. Unlike traditional funds, consumers can enjoy other advantages such as fund liquidity not affected by bank holidays, programmability, composability, and DeFi flexibility. These advantages cannot be realized if funds are not fully reserved or carry risks. This is why we support the GENIUS Act and MiCA, which have become the legal basis for stablecoins in Europe and the United States.
Additionally, the United States needs further crypto market structure regulation to address other issues, such as how to define commodities, securities, and digital collectibles, and how to handle comprehensive economic activities spanning banking, payment regulation, and capital markets. I believe that secondary market innovation and stablecoin yield functions will bring new development opportunities in this area.
Laura: I have a few more questions about Circle's recent IPO. The stock price was around $234 an hour ago, far higher than the IPO price of $31.
I'm curious about the company's atmosphere since the IPO, as I believe there might be a gap between expectations and actual results in the crypto field. Do you feel the same? Or is it surprising to you?
Dante: Unfortunately, I cannot speak on behalf of the entire Circle. I cannot say much about stock prices or the IPO itself, but becoming a public company has always been a long-term goal for Circle. As a public company, we remain focused on the core principles that drive our company's development, which is long-term growth. That may be the most I can share.
However, I believe the real news focus is the GENIUS Act. In fact, I'm currently heading to the White House to attend a legal signing ceremony that I've personally invested a lot of effort in. This moment is not only beneficial for the company but also significant for the entire country and market, as we finally have legal clarity in the United States.
How this new law might impact ordinary Americans and their funds
Laura: One last question. If we look ahead five years, how do you think this law will affect the lives of ordinary Americans, consumer rights, and the United States' global position?
Dante: I once wrote an article titled "How We Change the World When Blockchain Is No Longer a Topic". This article was published thanks to you, Laura Shin, when you were an editor at Forbes. I believe the GENIUS Act and the upcoming US market structure regulatory laws will gradually shift cryptocurrencies and blockchain technology from obvious applications to deeper infrastructure, and their impact will gradually become apparent.
I hope that in the next five years, we can not only consolidate the US dollar's position as the core currency of the internet economy and use it as a strategic advantage in global competition, but also allow more people to enjoy safe and reliable financial services based on smart devices. These services include not just simple payment functions but also complex financial activities such as savings, loans, and credit, bringing greater convenience and benefits to consumers. Therefore, the United States has officially entered this field.
Just yesterday, I attended a global conference and exchanged views with about 40-50 international regulatory and central bank representatives. For the first time in my seven years of working in this field, I can confidently say that the United States is establishing a legal framework for the cryptocurrency and blockchain industry, no longer relying solely on private sector performance to represent the country.
