Circle Internet Financial commented on the Basel Committee on Banking Supervision's draft chapter regarding the treatment of cryptoasset exposures, particularly focusing on stablecoins like USDC and EUROC. Circle argues that the Basel Committee's classification of all stablecoins under a single group is overly broad and suggests that tokenised cash stablecoins, which are fully reserved by cash and cash equivalents, should be recognized as "Group 1a" cryptoassets due to their lower risk profile. The company emphasizes that these stablecoins offer higher-quality reserve backing, are more liquid, and pose less market and credit risk compared to other forms. Circle recommends that the Basel Committee allow banks to hold tokenised cash stablecoins without requiring additional capital and proposes a quantified approach to assess infrastructure risk tied to blockchain technologies. Furthermore, they advocate for pass-through treatments for the Liquidity Coverage Ratio and Net Stable Funding Ratio to be applied to these stablecoins, highlighting the need for clarity in calculating liquidity risks. Circle's feedback underscores its commitment to enhancing the global financial system's openness and efficiency through stablecoin innovation.