Banks Push for Delay in Implementing Stablecoin Oversight Under GENIUS Act

The cryptocurrency sector is once again seeing bankers at the forefront of regulatory efforts, as a coalition of bank trade associations has petitioned the US Department of the Treasury to extend the public consultation period for the implementation of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. In a letter addressed to the Treasury Department and the Federal Deposit Insurance Corporation, US bankers are requesting a minimum 60-day extension for the comment period on three separate GENIUS Act rule proposals, following the completion of another rulemaking effort by the Office of the Comptroller of the Currency (OCC). The OCC's stablecoin issuer policing rule is crucial to the outcome of other regulations 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. According to the bankers, all these efforts are 'directly contingent on the OCC's final framework.' The collective regulatory work, including proposals yet to emerge from the Federal Reserve and other agencies, is of 'extraordinary scope and complexity.' The banking organizations, which include the American Bankers Association and the Bank Policy Institute, argue 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 for implementation by 2027, although federal agencies often 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.