Circle wants SEC to erase a costly Wall Street rule holding stablecoins back

Circle is urging the US Securities and Exchange Commission (SEC) to treat regulated stablecoins like cash across securities markets, potentially expanding USDC's institutional adoption.The USDC issuer outlined its proposals in an Oct. 28 statement, following an Oct. 20 letter requesting changes to how qualifying stablecoins are treated in securities fundraising, brokerage capital calculations, and customer reserve accounts.The proposed changes could give stablecoins a broader role in traditional finance by allowing financial institutions to use them for activities currently governed by cash-specific requirements. This could create new demand for USDC as Circle seeks to expand its presence in institutional financial markets.Circle seeks cash treatmentCircle's letter responds to the SEC's proposed Regulation Crypto Assets, which would establish a new framework for companies raising capital through certain cryptocurrency offerings.The proposal introduces two exemptions from traditional securities registration requirements. One would let companies raise up to $5 million over four years, while another would allow offerings of up to $75 million annually, subject to disclosure and other r...