- ∀a∃X((a ∉ a) → (a ∈ X))$\forall a\exists X((a \notin a) \implies (a \notin X))$
- ∀a∃X((a ∈ X) → (a ∉ a))$\forall a \exists X((a \in X) \implies (a \notin a))$.
The "upshot" is that you can deny (2) while retaining (1): you can say that there is some set that happens to have all noncircular elements to its name. However, if these are the only elements that set contains, then Russell's paradox arises, so we would have to say that if there is a set with all noncircular sets as elements, this set still is an element of itself on the side. This whole set does not have its elements just because they've been intensionally carved out as such, but either the whole set is "manually" self-inserted, or it satisfies a disjunctive property like, "All elements of X$X$ are either noncircular or are X$X$ itself."
Note, then, that there are set theories with universal sets, e.g. Quine's parafounded world, or Weber's paraconsistent ℵORD$\aleph_\text{ORD}$. At least in the consistency-friendly such cases, if there is a universal set, then the axiom scheme of separation has to fail for this set, the powerset axiom to boot: for a truly universal set, there is no difference between its elements and its subsets, or the concept of it having subsets is not well-thought, so there are no separable subsets or separate sets of subsets in play, here.
Yet another solution (from the separation-minus vantage, but comporting more strictly with the axiom of foundation) would be to invoke couniversal sets. The pure example would be $$\exists X \forall ab((a \neq X) \iff (a \in X))$$$$\exists X \forall ab((a \neq X) \iff (a \in X)).$$
The propriety of calling these "couniversal" is that they can be styled "sets of all other sets." In a world with a universal set simpliciter, then the deviant consequence obtains wherein the couniversal X$X$ contains its superior as an element, which also contains X$X$ in turn, so X$X$ ends up being cofounded. So to avoid this, one would have to go to a world where there's a couniversal set without a universal set above it. In this event, X$X$ is the set of all elements, not all sets (since X$X$ itself is not, in that world, an element of any set, not even itself).