Circle Submits Response to Switzerland’s Stablecoin and Crypto Consultation

Circle Internet Financial has expressed support for Switzerland's proposed stablecoin framework and has advocated for an equivalence-based regulatory path for non-Swiss stablecoins. The proposal aims to amend the Financial Institutions Act to introduce licensing categories for payment and crypto-institutions, establishing a prudential framework for fiat-backed stablecoins. Circle agrees with the proposal's emphasis on full reserve backing, asset segregation, enforceable redemption rights, and robust AML/CTF controls, which are intended to protect consumers and ensure market integrity. However, Circle cautions against categorizing foreign stablecoins alongside unbacked crypto-assets, which could isolate Switzerland from global financial activities. The company suggests recognizing third-country regimes with comparable objectives to treat regulated stablecoins as money-like instruments in Switzerland. Circle also proposes refinements to the framework to align with global standards, including foreign issuer disclosures and risk-based capital requirements, arguing that these measures could enhance transparency, financial stability, and consumer trust, thereby reinforcing Switzerland's position as a leading financial center.