The cryptocurrency sector is once again seeing bankers at the forefront of its key regulatory endeavors, as a coalition of banking 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, passed last year. In a letter addressed to the Treasury Department and the Federal Deposit Insurance Corporation this week, US bankers are seeking an extension of the comment periods for three different rule proposals under the GENIUS Act, to at least 60 days after the conclusion of another regulatory effort by the Office of the Comptroller of the Currency.
The OCC's initiative to implement its rule for overseeing stablecoin issuers has significant implications for the outcomes of other regulations being pursued by the Treasury's Office of Foreign Assets Control and the Financial Crimes Enforcement Network, as well as a related rulemaking by the FDIC. The bankers argue that all these efforts are directly contingent upon the OCC's final framework. Given the extraordinary scope and complexity of the collective regulatory work, including proposals yet to be released by the Federal Reserve and other agencies, the banking organizations believe 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 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 banking industry's request.
The same bankers are also involved in a debate related to stablecoins with the cryptocurrency industry, which has managed to delay the Digital Asset Market Clarity Act for months and potentially jeopardize its chances of becoming law this year.