The cryptocurrency sector often finds itself at odds with bankers, particularly when it comes to regulatory matters. Recently, a coalition of bank trade associations has petitioned the US Department of the Treasury to prolong the public consultation 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 Corp, the bankers are requesting a 60-day extension for the comment period on three separate GENIUS Act rule proposals, following the completion of another rule effort by the Office of the Comptroller of the Currency (OCC). The OCC's stablecoin issuer policing rule has significant implications for 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. According to the bankers, all these efforts are contingent upon the OCC's final framework, and collectively, they represent an unprecedented scope and complexity of regulatory work. The banking organizations, which include the American Bankers Association and the Bank Policy Institute, argue that having sufficient time to evaluate the proposed rules in conjunction with the finalized OCC framework will enable them to provide more comprehensive and useful comments to the agencies.
The GENIUS Act is slated to come into effect by 2027, although it is not uncommon for federal agencies to grant extensions for complex rules. The Treasury Department has not responded to requests for comment on the banking industry's request.
Meanwhile, the same bankers are engaged in a debate with the crypto industry over stablecoin-related regulations, which has already delayed the Digital Asset Market Clarity Act for months and potentially jeopardized its chances of becoming law this year.