The cryptocurrency sector is witnessing bankers playing a significant role in its key regulatory endeavors, with a coalition of bank trade associations recently requesting the US Department of the Treasury to prolong the public comment period for the implementation of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, enacted last year. In a letter addressed to the Treasury Department and the Federal Deposit Insurance Corp, US 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 push to implement its rule for overseeing stablecoin issuers has significant implications for 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.
According to the bankers, all these efforts are 'directly contingent on the OCC's final framework.' The collective regulatory endeavors, including proposals yet to emerge from the Federal Reserve and other agencies, 'represent a body of regulatory work of extraordinary scope and complexity.' The banking organizations, including the American Bankers Association and the Bank Policy Institute, argue that their comments 'will necessarily be more comprehensive, and therefore more useful to the agencies, if we have sufficient time to evaluate the proposed rules together and to evaluate each against the finalized OCC framework.' The GENIUS Act is slated to be in place by 2027, although federal agencies often grant extensions for comment periods on complex rules. The Treasury Department has not immediately responded to a request for comment on the bank industry's request. The same bankers are also 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.