The cryptocurrency sector is witnessing bankers playing a significant role in its key regulatory endeavors, with a coalition of bank trade associations now urging the US Department of the Treasury to prolong 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, US bankers are requesting that the comment periods for three distinct GENIUS Act rule proposals be extended to at least 60 days after the Office of the Comptroller of the Currency completes its rulemaking effort. The OCC's push to implement its rule for overseeing stablecoin issuers has significant implications for 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 on the OCC's final framework, and collectively represent a regulatory endeavor of extraordinary scope and complexity.
The banking organizations, including the American Bankers Association and the Bank Policy Institute, argue 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 complex rules. The Treasury Department has not immediately responded to a request for comment on the bank industry's request.
Meanwhile, the same bankers are also engaged in a stablecoin-related debate with the crypto industry, which has already caused a delay in the Digital Asset Market Clarity Act for months and may potentially jeopardize its chances of becoming law this year.