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UK Urged to Mix EU Clarity with US Rules for Crypto

Circle urges UK to blend EU and US crypto rules, Mastercard questions domestic value.

  • Circle‘s policy chief urged the UK to build its crypto regulatory framework by blending the EU’s MiCA clarity with the US’s new stablecoin law.
  • He warned that without clear rules, stablecoin activity will remain offshore, jeopardizing London’s status as a financial innovation hub.
  • Mastercard argued stablecoins lack a clear consumer value proposition for domestic payments but praised their cross-border potential.

Circle‘s policy head Dante Disparte told a UK House of Lords committee on Wednesday that the country has a regulatory golden opportunity. He argued the UK could combine the best elements from the European Union’s Markets in Crypto-Assets Regulation (MiCA) and the U.S. GENIUS Act. “The model is clear: take the best of both and make it distinctly British,” Disparte stated.

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Consequently, he proposed four governing principles, including 1-to-1 reserve backing and strong transparency standards. Disparte also pushed back on fears that stablecoins threaten traditional banking. “Trusted stablecoins expand markets. They do not shrink them,” he asserted during the Financial Services Regulation Committee meeting.

However, Mastercard‘s Jesse McWaters provided a contrasting perspective on consumer adoption. He said stablecoins currently lack a “clear value proposition” to compete with domestic payment cards. Meanwhile, he acknowledged the technology’s strength in accelerating cross-border transactions.

This parliamentary session was part of an ongoing inquiry into UK stablecoin growth and regulation. The broader crypto asset regime from the Financial Conduct Authority is slated to take effect in October 2027.

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