US Banking Groups Push for Delay in Implementing Stablecoin Regulations Under GENIUS Act

The cryptocurrency sector is once again seeing bankers at the forefront of its key regulatory endeavors, 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, enacted last year. In a letter addressed to the Treasury Department and the Federal Deposit Insurance Corporation this week, US bankers are requesting that the comment periods for three separate rule proposals under the GENIUS Act be extended, with a minimum of 60 days after the completion of another rulemaking effort by the Office of the Comptroller of the Currency.

The OCC's push to implement its rule for overseeing stablecoin issuers is crucial to the outcome of other rules being pursued by the Treasury's Office of Foreign Assets Control and the Financial Crimes Enforcement Network, as well as a related rulemaking at the FDIC. According to the bankers, all these efforts are "directly contingent upon the OCC's final framework." The collective efforts, in addition to regulatory proposals that have not yet emerged from the Federal Reserve and other agencies, represent a regulatory endeavor of extraordinary scope and complexity.

The banking organizations, including the American Bankers Association and the Bank Policy Institute, stated 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 be in place by 2027, although it is not uncommon for federal agencies to grant extensions for comment periods on complex rules. The Treasury Department did not immediately respond to a request for comment on the bank industry's request. The same bankers are also involved in a stablecoin-related debate with the crypto industry, which has managed to delay the Digital Asset Market Clarity Act for months and potentially jeopardize its chances of becoming law this year.