US Banking Groups Push for Delay in Implementing Stablecoin Regulatory Framework

The cryptocurrency sector is seeing increased involvement from bankers in its key regulatory initiatives, with a coalition of bank trade associations recently requesting that the US Department of the Treasury extend the public consultation period for the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. In a letter to the Treasury Department and the Federal Deposit Insurance Corp, US bankers are seeking extended comment periods for three GENIUS Act rule proposals, requesting a minimum of 60 days after the completion of another rule 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 bankers argue that all these efforts are contingent on the OCC's final framework and represent a complex body of regulatory work. The banking organizations, including the American Bankers Association and the Bank Policy Institute, believe that having sufficient time to evaluate the proposed rules together and against the finalized OCC framework will enable them to provide more comprehensive and useful comments. The GENIUS Act is scheduled to be in place by 2027, although federal agencies often grant extensions for complex rules. The Treasury Department has not responded to requests 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.