The cryptocurrency sector often finds itself at the forefront of bankers' regulatory efforts, and this time, a coalition of US bank trade associations has requested that the US Department of the Treasury extend the public consultation period for the implementation of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which was passed last year. In a letter sent to the Treasury Department and the Federal Deposit Insurance Corporation, US bankers are seeking an extension of the comment period for three different GENIUS Act rule proposals, requesting at least 60 days after the Office of the Comptroller of the Currency (OCC) completes its rulemaking process.
The OCC's efforts to implement its rule for overseeing stablecoin issuers have significant implications for 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. The bankers argue that all these efforts are contingent upon the OCC's final framework and represent an unprecedented scope and complexity of regulatory work.
The banking organizations, including the American Bankers Association and the Bank Policy Institute, claim 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 set to come into effect 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 bank industry's request.
The same bankers are also engaged in a stablecoin-related debate with the crypto industry, which has already delayed the Digital Asset Market Clarity Act for months and may jeopardize its chances of becoming law this year.