Circle Asks SEC to Clarify Cash Treatment for Qualifying Payment Stablecoins

TL;DR: Circle’s comment letter asks the SEC to align its crypto-asset proposal with payment-stablecoin rules. The company’s requested treatment remains a policy position, not a Commission decision. Circle has set out how it wants payment stablecoins to fit into the SEC’s proposed framework for crypto-asset offerings. Its October 28 summary describes a comment letter submitted on October 20, with requests covering cash treatment, broker-dealer calculations and the role of continuing technical work on blockchain networks. The submission is relevant because it addresses the financial plumbing of tokenized markets, rather than simply whether a token can be issued. The letter asks for consistent treatment across rules In its published summary, Circle calls for coordination between proposed Regulation Crypto Assets and the GENIUS Act. It asks the SEC to clarify how qualifying payment stablecoins can be used as consideration and settlement assets. The company also seeks cash treatment under proposed Rule 302(b) and a reduction in the stated broker-dealer haircut for qualifying stablecoins from 2% to zero, subject to safeguards. These are requests from an interested market participant. The...