Circle's move this time can be seen as giving regulators a lesson; on-chain data is inherently open and transparent, but insisting on applying the bank-style KYC to stablecoins is indeed a bit forcing a square peg into a round hole.

CryptoWorld News reports that, according to Crowdfund Insider, Circle has submitted two comment letters to the U.S. Department of the Treasury in response to proposed rules by FinCEN on anti-money laundering (AML) and sanctions frameworks, as well as FinCEN and OFAC's AML/CFT and sanctions compliance rules for licensed payment stablecoin issuers (PPSI) under the Genius Act. Circle urges regulators to recognize blockchain-native compliance tools such as on-chain monitoring, smart contract-level address restrictions, transaction graph analysis, and transparency of public ledgers, and states that relevant rules should not be designed solely around banks but should also apply to non-bank entities like stablecoin issuers.