GENIUS Act Blocks Big Tech, Banks From Stablecoin Dominance, Says Circle Exec

July 20, 2025 — Circle’s Chief Strategy Officer, Dante Disparte, said the recently passed GENIUS Act puts firm barriers in place to stop Big Tech and large banks from dominating the stablecoin market, promoting fair competition and regulatory oversight.

A “Libra Clause” To Prevent Tech Monopoly

Disparte, speaking on the Unchained podcast, highlighted a specific clause in the GENIUS Act — which he dubbed the “Libra clause” requiring non-banks to create standalone subsidiaries to issue stablecoins. These issuers must clear antitrust hurdles and gain approval from a Treasury committee with veto power.

Banks are also restricted. Any lender issuing a stablecoin must form a separate subsidiary and is barred from using leverage, taking risks, or engaging in lending with the stablecoin reserves.

This structure, Disparte said, is even stricter than the models proposed by major institutions like JPMorgan, ultimately benefiting US consumers and supporting the dollar’s stability.

GENIUS Act Gains Strong Bipartisan Backing

The GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) passed last week with over 300 votes in the U.S. House of Representatives, including support from 102 Democrats.

The act introduces strict rules for stablecoin issuers:

• Projects with under $10 billion can operate under state money-transmitter laws.
• Projects exceeding that amount must register as national trust banks.
• The law bans interest-bearing stablecoins and unbacked tokens.
• Criminal penalties apply for those issuing unstable or fraudulent tokens.