Circle Denies Federal Bank Charter Ambitions Amid Regulatory Clarity Call

Stablecoin issuer Circle has refuted reports claiming it is pursuing a U.S. federal bank charter. In a statement released by Chief Strategy Officer Dante Disparte, the company clarified that it is not seeking to become a federally chartered bank or to acquire a deposit-taking institution. Instead, Circle is positioning itself to align with future regulatory requirements applicable to payment stablecoins, which might involve registering under a federal or state trust charter or obtaining a nonbank license. This clarification follows earlier hints of potential interest in a bank charter, as stated by CEO Jeremy Allaire in 2022. The announcement comes at a time when regulatory and legislative scrutiny over stablecoins is intensifying. Lawmakers and regulators are considering distinct regulatory paths, as evidenced by proposals like the STABLE Act and the GENIUS Act, which aim to establish clear legal frameworks for stablecoin operations. Other crypto-related firms such as Coinbase, BitGo, and Paxos have also been mentioned in discussions regarding banking licenses, although only Coinbase has confirmed weighing such moves. With Federal Reserve Chair Jerome Powell urging the establishment of a clear legal framework for stablecoins, the overall sentiment reflects an industry in search of regulatory clarity rather than an immediate shift in market operations.