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Can Circle’s CPN Beat SWIFT? Ft. Elise Soucie Watts & Rob Hadick
Apr 28, 2025
Join Elise Soucie Watts, Executive Director at Global Digital Finance, and Rob Hadick, General Partner at Dragonfly, as they dive into the launch of Circle Payments Network (CPN) and its ambitious goals for revolutionizing cross-border payments. They tackle the regulatory hurdles facing hybrid financial institutions and unpack the differences between yield-bearing and payment stablecoins. The conversation also explores crypto firms pursuing bank charters and the implications of compliance regulations in today’s fast-evolving financial landscape.
46:59
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Quick takeaways
- The Circle Payments Network aims to revolutionize cross-border payments for SMBs by addressing existing inefficiencies in traditional banking systems.
- The regulatory complexities surrounding yield-bearing stablecoins create challenges in their classification, potentially complicating compliance and operational frameworks for crypto firms.
Deep dives
State vs. Federal Regulation of Stablecoins
State-level regulation of stablecoins raises concerns about the reciprocity arrangements that would be necessary for cross-border transactions. A stablecoin that is only recognized at the state level may not facilitate international use cases effectively, undermining one of the primary benefits of stablecoins: global payments. The potential for federal agreements, such as those established under the Genius Act, is critical to ensuring that state-minted stablecoins can engage with foreign jurisdictions like the UK and the EU. Without federal oversight, states may struggle to coordinate compliance and regulatory standards necessary for interoperable financial systems.
