Banks Push for Delay in Implementing Stablecoin Oversight Under GENIUS Act

The cryptocurrency industry often finds itself at odds with bankers over regulatory matters, and this time, a coalition of bank trade 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, which was passed last year. In a letter sent to the Treasury Department and the Federal Deposit Insurance Corp, US bankers are asking for extended comment periods of at least 60 days after the Office of the Comptroller of the Currency (OCC) completes its rulemaking effort. The OCC's push to implement its rule for policing stablecoin issuers has significant implications for 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. All these efforts are contingent on the OCC's final framework, the bankers argue. Given the extraordinary scope and complexity of the regulatory work involved, 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 sufficient time to evaluate the proposed rules together and against the finalized OCC framework. The GENIUS Act is slated 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 debate with the crypto industry over stablecoin-related issues, which has already delayed the Digital Asset Market Clarity Act for months and may jeopardize its chances of becoming law this year.