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 extend the public commentary 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 Corporation, US bankers are requesting that the commentary period for three separate rule proposals under the GENIUS Act be extended to at least 60 days after the Office of the Comptroller of the Currency (OCC) completes its rulemaking process for policing stablecoin issuers.
The OCC's efforts are 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. According to the bankers, all these efforts are directly contingent on the OCC's final framework, and collectively represent an unprecedented scope and complexity of regulatory work.
The banking organizations, including the American Bankers Association and the Bank Policy Institute, argue 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 to the agencies. The GENIUS Act is set to be implemented by 2027, although it is not uncommon for federal agencies to grant extensions for complex rules. The Treasury Department has not yet responded to a request for comment on the banking industry's request. Meanwhile, the same bankers are engaged in a debate with the crypto industry over stablecoin regulation, which has already delayed the Digital Asset Market Clarity Act for months and potentially jeopardized its chances of becoming law this year.