Banks Request Delay in Implementation of Stablecoin Regulations Under the GENIUS Act

The cryptocurrency sector often finds itself entangled with bankers in high-priority regulatory endeavors. This time, a coalition of bank trade associations has petitioned the US Department of the Treasury to prolong the public commentary period for the implementation of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which was passed last year. In a letter addressed to the Treasury Department and the Federal Deposit Insurance Corporation, US bankers are requesting that the commentary periods for three distinct GENIUS Act rule proposals be extended to at least 60 days after the conclusion of another rule-making effort at the Office of the Comptroller of the Currency. The OCC's push to implement its rule for policing stablecoin issuers has significant implications for the outcome of other rules being pursued at the Treasury's Office of Foreign Assets Control and the Financial Crimes Enforcement Network, as well as a related rulemaking at the FDIC. According to the bankers, all these efforts are 'directly contingent on the OCC's final framework.' The collective efforts, in addition to regulatory proposals that have not yet emerged from the Federal Reserve and other agencies, 'represent a body of regulatory work of extraordinary scope and complexity.' The banking organizations, including the American Bankers Association and the Bank Policy Institute, stated that their comments 'will necessarily be more comprehensive, and therefore more useful to the agencies, if we have sufficient time to evaluate the proposed rules together and to evaluate each against the finalized OCC framework.' The GENIUS Act is intended to be in place by 2027, although it is not uncommon for federal agencies to grant extensions for complex rules. The Treasury Department did not immediately respond to a request for comment on the bank industry's request. The same bankers are also involved in a stablecoin-related debate with the crypto industry that has managed to delay the Digital Asset Market Clarity Act for months and potentially jeopardize its chances of becoming law this year.