Circle Executive: 'GENIUS Act' Aims to Prevent Tech Giants and Banks from Dominating Stablecoin Market

Circle's Chief Strategy Officer Dante Disparte revealed on the Unchained podcast that the 'GENIUS Act' contains a little-known provision aimed at preventing tech giants and Wall Street titans from dominating the stablecoin market. Non-bank institutions looking to issue tokens pegged to the US dollar must establish 'an entity more like Circle than a bank,' remove anti-monopoly barriers, and accept veto power from the Treasury Department committee. Disparte noted that lending institutions issuing stablecoins must hold them in a legally separate subsidiary and include these stablecoins in a balance sheet that is 'risk-free, unleveraged, and non-lending.' This structure is even 'more conservative' than the deposit token model proposed by JPMorgan and other institutions. He added, 'It sets clear rules, and I think ultimately the biggest winners are American consumers and market participants, frankly, and the dollar itself.'

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