The cryptocurrency industry often finds itself at odds with bankers over regulatory matters, and this time, a coalition of bank trade associations has requested that the US Department of the Treasury extend the public consultation period for the implementation of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. In a letter sent to the Treasury Department and the Federal Deposit Insurance Corp, US bankers are seeking an extension of the comment period for three GENIUS Act rule proposals, asking for at least 60 days after the Office of the Comptroller of the Currency (OCC) completes its rulemaking effort.
The OCC's stablecoin issuer policing rule is crucial to the outcome of other rules being pursued by the Treasury's Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), as well as a related rulemaking at the FDIC. The bankers argue that all these efforts are 'directly contingent on the OCC's final framework' and that the collective regulatory work is of 'extraordinary scope and complexity'. The American Bankers Association and the Bank Policy Institute, among other banking organizations, claim that their comments will be more comprehensive and useful to the agencies if they have sufficient time to evaluate the proposed rules together and against the finalized OCC framework.
The GENIUS Act is set to be implemented by 2027, although it is not uncommon for federal agencies to grant extensions for complex rules. The Treasury Department has not responded to a request for comment on the bank industry's request.
Meanwhile, the same bankers are engaged in a stablecoin-related debate with the crypto industry, which has delayed the Digital Asset Market Clarity Act for months and potentially jeopardized its chances of becoming law this year.