Circle Promotes Permissionless Blockchain with Global Regulators
Blog post from Circle
Circle Internet Financial recently submitted a response to the Basel Committee on Banking Supervision's proposed standards for governing crypto assets, emphasizing the need for a nuanced regulatory approach. Circle commended the Committee's engagement with both financial institutions and the broader non-government sector but expressed concerns over the proposed broad restrictions on permissionless blockchain technology, which is vital for the global blockchain economy. Circle urged regulators to avoid imposing uniform restrictions based on underlying technology and to facilitate safe experimentation to harness the benefits of permissionless blockchains, such as enhanced network resilience and transparency. The response drew parallels between the regulation of communications protocols like the internet and blockchain, arguing that sophisticated, secure applications can be built on them without needing regulation. Circle highlighted the security and resiliency benefits of permissionless distributed ledgers, noting their advantages over permissioned systems in providing cybersecurity enhancements and maintaining business continuity. As blockchain technology becomes more widespread, Circle advocates for collaboration between regulators and the industry to maximize the advantages and safety of new financial technologies, aiming to make financial systems more accessible, cost-effective, and efficient globally.