The cryptocurrency sector is witnessing increased involvement from bankers in regulatory efforts, with a coalition of bank trade associations recently petitioning the US Department of the Treasury to extend the public consultation period for the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. In a letter addressed to the Treasury Department and the Federal Deposit Insurance Corp, the bankers are seeking extended comment periods for three GENIUS Act rule proposals, requesting a minimum of 60 days after the Office of the Comptroller of the Currency (OCC) completes its rulemaking process. The OCC's rule for regulating stablecoin issuers has 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. The bankers argue that all these efforts are contingent on the OCC's final framework and represent a complex body of regulatory work.
The banking organizations, including the American Bankers Association and the Bank Policy Institute, believe that having sufficient time to evaluate the proposed rules together and against the finalized OCC framework will enable them to provide more comprehensive and useful comments. The GENIUS Act is slated to come into effect by 2027, although federal agencies often grant extensions for complex rules. The Treasury Department has not yet responded to the bank industry's request. Meanwhile, the same bankers are engaged in a debate with the crypto industry over stablecoin regulations, which has already delayed the Digital Asset Market Clarity Act for months and may jeopardize its chances of becoming law this year.