Banking Sector Seeks Delay in Implementation of Stablecoin Regulatory Framework

The cryptocurrency industry is witnessing increased involvement from bankers in regulatory efforts, with a coalition of bank trade associations recently requesting 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, US bankers are seeking extended comment periods for three GENIUS Act rule proposals, requesting a minimum of 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 crucial 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 represent a complex body of regulatory work. The American Bankers Association and the Bank Policy Institute, among other banking organizations, are seeking sufficient time to evaluate the proposed rules together and against the finalized OCC framework, emphasizing the need for comprehensive comments. The GENIUS Act is slated for implementation by 2027, although federal agencies often grant extensions for complex rules. The Treasury Department has not responded to requests 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 delayed the Digital Asset Market Clarity Act for months and potentially jeopardized its chances of becoming law this year.