The cryptocurrency sector is witnessing bankers playing a crucial role in its key regulatory endeavors, with a coalition of bank trade associations recently requesting 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 Corp, US bankers are seeking extended comment periods for three GENIUS Act rule proposals, ideally 60 days after the completion of another rulemaking effort by the Office of the Comptroller of the Currency (OCC). The OCC's stablecoin issuer policing rule is deemed pivotal to the outcome of 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. The bankers argue that all these efforts are "directly contingent on the OCC's final framework" and collectively represent a regulatory undertaking of unprecedented scope and complexity.
The banking organizations, including the American Bankers Association and the Bank Policy Institute, emphasize 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 for implementation by 2027, although federal agencies often grant extensions for complex rule comment periods. The Treasury Department has not immediately responded to a request for comment on the bank industry's request. Meanwhile, the same bankers are engaged in a stablecoin-related debate with the crypto industry, which has already delayed the Digital Asset Market Clarity Act for months and potentially jeopardized its chances of becoming law this year.