The cryptocurrency sector is witnessing significant involvement from bankers in its key regulatory endeavors. Recently, a coalition of bank trade associations has requested the US Department of the Treasury to prolong the public consultation window 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 an extension of the comment period for three GENIUS Act rule proposals, asking for a minimum of 60 days after the conclusion of another rule effort by the Office of the Comptroller of the Currency (OCC). The OCC's initiative to implement its rule for policing 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. The bankers argue that all these efforts are 'directly contingent on the OCC's final framework' and represent a regulatory undertaking of extraordinary scope and complexity.
The collective efforts, along with regulatory proposals yet to emerge from the Federal Reserve and other agencies, necessitate sufficient time for evaluation. The banking organizations, including the American Bankers Association and the Bank Policy Institute, believe that their comments will be more comprehensive and useful to the agencies if they have adequate time to assess the proposed rules together and against the finalized OCC framework. The GENIUS Act is slated to be in place by 2027, and while it is not uncommon for federal agencies to grant extensions for 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.