Circle Denies Rumors of Seeking a U.S. Federal Bank Charter, Outlines Its Stablecoin Plans

Circle, one of the world's largest stablecoin issuers, has officially denied recent reports that it is seeking a U.S. federal bank charter.

Cryptocurrency firm Circle is not seeking a U.S. federal bank charter, Chief Strategy Officer and Head of Global Policy Dante Disparte announced on Thursday.

What Happened: Recent reports by The Wall Street Journal stated that several U.S. crypto firms, including Circle and BitGo, are preparing to apply for bank licenses in the United States. The sources noted that these firms are seeking closer ties with United States banking institutions.

However, Circle confirmed that its institution will not be pursuing the acquisition of a banking license.

On April 25, Disparte took to his X (formerly Twitter) profile to clarify the matter further.

“Circle has no plans to become any type of bank, nor to form any insured depository institutions. We will be applying for registration in the near-term as a federal or state trust charter entity or nonbank license institution to follow the new regs for payment stablecoins,” Disparte stated.

He added that Circle is committed to complying with the laws passed by Congress and urged members of Congress to swiftly pass the bipartisan stablecoin legislation.

“We need regulatory clarity to support responsible innovation, market stability and consumer protection in America.”

Topical Related Content: What Is a Stablecoin? A Complete Guide to the Digital Tokens Used to Facilitate Cryptocurrency Transactions

Why It's Important: As the U.S. regulatory pushes towards new rules for governing stablecoins, the House Financial Services Committee voted to advance a Republican-backed bill that would set up novel regulatory parameters for stablecoins.

Earlier this month, the House panel voted 24-18 on Thursday to approve the "Stablecoin TEFRA Act," which aims to regulate the rapidly expanding market for private digital currencies pegged to the dollar.

The legislation, sponsored by Rep. Steve Scalise (R-LA), would place stablecoins under the supervision of the Treasury Department, requiring issuers to register with the agency and maintain a minimum capital ratio.

It would also subject stablecoin services to the same examination and supervision standards applied to national banks and federal savings institutions.

The move comes as Washington accelerates its response to stablecoins.