The cryptocurrency sector is witnessing bankers taking a significant role in shaping its key regulatory efforts. Recently, 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, which was passed last year.
In a letter addressed to the Treasury Department and the Federal Deposit Insurance Corp, the bankers are requesting an extension of the comment period for three GENIUS Act rule proposals until at least 60 days after the Office of the Comptroller of the Currency (OCC) concludes its rulemaking process for regulating stablecoin issuers. The OCC's rule is seen as pivotal to the outcome of other regulatory efforts underway at 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, emphasized that having sufficient time to evaluate the proposed rules in conjunction with the finalized OCC framework will enable them to provide more comprehensive and useful feedback to the agencies. The GENIUS Act is slated for implementation by 2027, although it is not uncommon for federal agencies to grant extensions for complex rulemakings.
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 debate with the crypto industry over stablecoin regulation, which has already delayed the Digital Asset Market Clarity Act for months and potentially jeopardizes its chances of becoming law this year.