Circle’s Dante Disparte told the House of Lords committee on Wednesday that the UK had a unique chance to combine the best parts of the EU’s MiCA framework and the US GENIUS Act.
Dante Disparte, Circle’s policy chief, told a committee in the UK House of Lords that the UK has an opportunity to develop its own crypto system by combining the clarity of the EU’s Markets in Crypto-Assets Regulation (MiCA) with parts of the new US stablecoin framework.
Disparte stated at a meeting of the House of Lords Financial Services Regulation Committee on Wednesday, the model is clear: take the best of both and make it distinctly British. From Europe, get clear rules, definitions, licensing, governance, and strong consumer protection from the US and the Genius Act.
Disparte said that without rules in place, stablecoin activities would stay offshore, putting UK users at greater risk and threatening London’s position as a worldwide center for financial innovation. Disparte and Jesse McWaters from Mastercard were to testify at the House of Lords’ investigation into growth and proposed rules for UK stablecoins.
The UK’s Financial Conduct Authority (FCA) has been talking about a wider set of rules for cryptocurrencies that will go into effect on October 25, 2027. Companies who want to do the new regulated activities would need permission.
Stablecoins seen as expanding, not replacing banking
Disparte also discussed worries that stablecoins could take money out of banks and lower the demand for traditional lines of credit.
As Disparte said, the future is not banks versus stablecoins. He added that a clear regulatory framework can handle these risks without impeding innovation by setting high standards for reserves and liquidity and encouraging banks to get involved.
Disparte suggested four basic rules to guide the UK’s regulatory framework: 1-to-1 reserve backing, mandating high-quality liquid reserves, enforced redemptions, and strict criteria for transparency.
Circle is the company that makes USDC USDC$1, the second-largest stablecoin in the world by market cap.
The GENIUS Act, which set up the US’s federal stablecoin system, became law on July 18, 2025. The MiCA framework from the EU was the first complete set of rules for the crypto business. It went into force for crypto-asset service providers on December 30, 2024.
Debate continues over stablecoin value proposition
McWaters of Mastercard claimed that stablecoins don’t have a clear value proposition that would make them a threat to payment cards.
McWaters added that stablecoins lack a “clear value proposition that would drive customers” to use them instead of the many other payment choices available in the US. He also praised their ability to speed up transactions across borders.
He stated, “Blockchain technology, which is the foundation for stablecoins, offers a new, innovative, and possibly very useful way to move money, especially across borders.”