The cryptocurrency sector often finds itself at odds with bankers over regulatory issues, and this time, a coalition of banking associations has requested that the US Department of the Treasury extend the public comment period for the implementation of 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 an extension of the comment period for three GENIUS Act rule proposals, asking for at least 60 days after the Office of the Comptroller of the Currency (OCC) completes its rulemaking process.
The OCC's efforts to regulate stablecoin issuers have 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. According to the bankers, all these efforts are "directly contingent on the OCC's final framework," and collectively represent a complex and extensive body of regulatory work.
The banking organizations, including the American Bankers Association and the Bank Policy Institute, argue that they need sufficient time to evaluate the proposed rules and the finalized OCC framework to provide comprehensive and useful comments. The GENIUS Act is scheduled to be implemented by 2027, although it is common 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 may jeopardize its chances of becoming law this year.