Banks Push for Delay in Implementing Stablecoin Oversight Under GENIUS Act

The cryptocurrency industry often finds itself at odds with bankers over regulatory matters, and now a coalition of banking associations has requested that the US Department of the Treasury extend the public comment period for implementing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. In a letter to the Treasury Department and the Federal Deposit Insurance Corporation, US bankers are seeking extended comment periods of at least 60 days after the Office of the Comptroller of the Currency (OCC) completes its rulemaking process. The OCC's rule for policing stablecoin issuers has significant implications for other regulations 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 upon 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 allow them to provide more comprehensive and useful comments. The GENIUS Act is scheduled to be implemented by 2027, but federal agencies often grant extensions for complex rules. The same bankers are also involved in a debate with the crypto industry over the Digital Asset Market Clarity Act, which has been delayed for months and may not become law this year.