Circle Dismisses Rumors of U.S. Bank Charter Plans as Stablecoin Regulation Heats Up

Circle Dismisses Rumors of U.S. Bank Charter Plans as Stablecoin Regulation Heats Up

Circle’s Strategy Chief Says Company Focused on Compliance, Not Chartering a Bank

Washington, D.C. – April 25, 2025 – Amid rising speculation surrounding the future of stablecoin regulation in the United States, Circle, the issuer of the popular USDC stablecoin, has officially denied seeking a U.S. federal banking license.

In a direct and public response on X (formerly Twitter), Dante Disparte, Circle’s Chief Strategy Officer and Head of Global Policy, stated that the company is not pursuing a U.S. bank charter or attempting to acquire an insured depository institution.

“Circle is not looking to become a bank,” Disparte wrote, instead affirming the company’s commitment to comply with future regulatory frameworks for payment stablecoins.

Clarifying the Rumors: No Bank Charter Plans, But Regulatory Readiness

The clarification follows recent media reports suggesting that several prominent crypto firms—including Circle, BitGo, Coinbase, and Paxos—were considering bank licensing options. While Coinbase confirmed it may pursue such a path, Circle made its position crystal clear: it’s looking at non-bank licensing structures, such as federal or state trust charters, depending on the outcomes of pending regulation.

“We welcome regulatory clarity for stablecoins, but it must come soon,” Disparte urged, pressing lawmakers for swift action.

Circle’s Position Isn’t New—But the Context Has Changed

Although Disparte’s statement refutes current claims, it’s worth noting that Circle CEO Jeremy Allaire did express interest in a bank charter back in April 2022 during an interview with Bloomberg. He indicated then that discussions were underway with regulators.

However, that was before the U.S. regulatory landscape around stablecoins began to shift so dramatically.

What’s Changing: STABLE vs. GENIUS Acts in Congress

The backdrop to this discussion is a rapidly evolving regulatory environment for U.S. stablecoins. Two competing pieces of legislation are currently moving through Congress:

🟢 The STABLE Act (Stablecoin Transparency and Accountability for a Better Ledger Economy)

• Backed by Republicans

• Emphasizes federal-level regulation

• Focuses on strict accountability and transparency for stablecoin issuers

🟦 The GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins)

• Introduced earlier and already passed the Senate Banking Committee

• Offers flexibility through dual federal and state regulation options

Each bill could reshape how firms like Circle operate, and could determine whether non-bank trust licenses become the standard route for stablecoin compliance in the U.S.

Why It Matters: The Stakes for Circle and the Industry

Circle’s denial of bank charter rumors does not signal retreat—it highlights a strategic pivot toward regulatory alignment. As a key player in the global stablecoin economy, Circle’s next steps could set a precedent for how crypto firms adapt to traditional financial regulation without becoming banks themselves.

With Congress debating the future of digital currencies, and regulatory uncertainty looming, Circle’s public stance reinforces the company’s role as both a compliant innovator and an advocate for clear rules.