US Banking Groups Push for Delay in Implementing Stablecoin Regulatory Act

The US banking sector is increasingly involved in the cryptocurrency industry's regulatory efforts, 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, the bankers are seeking an extension of the comment period for three rule proposals related to the GENIUS Act, to at least 60 days after the Office of the Comptroller of the Currency (OCC) completes its rulemaking process. The OCC's rule for overseeing stablecoin issuers 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. The banking organizations, including the American Bankers Association and the Bank Policy Institute, argue that the collective regulatory efforts represent a complex and extensive body of work, and that their comments will be more comprehensive and useful to the agencies if they have sufficient time to evaluate the proposed rules together and against the finalized OCC framework. The GENIUS Act is slated to come into effect by 2027, although federal agencies often grant extensions for complex rulemaking processes. The Treasury Department has not yet responded to the bank industry's request. Meanwhile, the same bankers are engaged 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.