US Banking Groups Push for Delay in Implementing Stablecoin Oversight Rules

The US banking sector is increasingly involved in the cryptocurrency industry's regulatory efforts, with a coalition of bank trade associations recently requesting 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 addressed to the Treasury Department and the Federal Deposit Insurance Corp, the bankers are seeking extended comment periods of at least 60 days after the completion of another rulemaking effort by the Office of the Comptroller of the Currency (OCC). The OCC's stablecoin issuer policing rule is crucial to the outcome of other rules being developed 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 banking organizations argue that all these efforts are directly contingent on the OCC's final framework and represent a complex body of regulatory work. The American Bankers Association and the Bank Policy Institute are among the organizations requesting more time to evaluate the proposed rules and provide comprehensive comments. The GENIUS Act is slated to be implemented by 2027, but federal agencies often grant extensions for complex rules. The Treasury Department has not yet responded to the request, while the banking groups are also engaged in a debate with the crypto industry over the Digital Asset Market Clarity Act, which has been delayed for months.