US Banks Request Delay in Implementation of Stablecoin Regulatory Act

The US banking sector is seeking an extension on the public consultation period for the implementation of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, citing the need for more time to understand the interactions between various regulatory proposals. A coalition of bank trade associations has written to the US Department of the Treasury, requesting a 60-day extension on the comment period for three rule proposals related to the GENIUS Act, following the completion of another rule effort by the Office of the Comptroller of the Currency (OCC). The OCC's rule for policing stablecoin issuers is seen as crucial to 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 Federal Deposit Insurance Corp (FDIC). The banking organizations argue that the collective efforts represent a complex body of regulatory work, and that their comments will be more comprehensive and useful to the agencies if they have sufficient time to evaluate the proposed rules together. The GENIUS Act is slated to be in place by 2027, and while federal agencies often grant extensions on complex rules, the Treasury Department has not yet responded to the bank industry's request. This development is part of a broader debate between the banking sector and the crypto industry over stablecoin regulation, which has already delayed the Digital Asset Market Clarity Act for months and may jeopardize its chances of becoming law this year.