Banks Request Delay in Implementation of Stablecoin Regulatory Act

The cryptocurrency sector often finds itself at odds with bankers over regulatory matters, and this time, a coalition of banking trade associations has petitioned 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 Corporation, US bankers have requested that the comment periods for three separate GENIUS Act rule proposals be extended to at least 60 days after the Office of the Comptroller of the Currency (OCC) completes its rulemaking process for policing stablecoin issuers. The OCC's efforts have significant implications for other rules being developed 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. According to the bankers, all these efforts are 'directly contingent on the OCC's final framework.' The collective regulatory work, including proposals that have not yet emerged from the Federal Reserve and other agencies, is 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 implemented 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. The same bankers are also 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 jeopardized its chances of becoming law this year.