UK Urged to Combine MiCA and US Stablecoin Rules for Clear Framework

A policy executive from Circle has advised the United Kingdom to build its crypto regulations by blending elements from European and US frameworks. Speaking before a House of Lords committee, Dante Disparte highlighted the opportunity to merge clarity from the Markets in Crypto Assets Regulation with provisions from the GENIUS Act.

Regulatory Clarity and Market Competitiveness

Disparte emphasized that adopting clear definitions, licensing standards, and governance rules could strengthen the UK’s position as a global financial hub. He warned that without a proper framework, stablecoin activity may shift offshore, increasing risks for domestic users.

Stablecoin Oversight and Key Principles

The proposal outlined core principles, including 1-to-1 reserve backing, high-quality liquid assets, enforceable redemptions, and strong transparency standards. These measures aim to ensure stability while supporting innovation in digital payments.

While stablecoins are seen as enhancing cross-border transactions, some industry voices argue they still lack a strong value proposition compared to existing payment systems. However, clearer regulation is expected to support broader adoption and market growth.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.