The cryptocurrency sector often finds itself at odds with banking interests, particularly when it comes to regulatory matters. 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. In a letter addressed to the Treasury Department and the Federal Deposit Insurance Corporation, the banking groups have requested a 60-day extension for the submission of comments on three separate rule proposals under the GENIUS Act, pending the completion of another rulemaking effort by the Office of the Comptroller of the Currency (OCC).

The OCC's initiative to regulate stablecoin issuers has significant implications for the outcome of 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 endeavors, including proposals yet to emerge from the Federal Reserve and other agencies, constitute a 'body of regulatory work of extraordinary scope and complexity.' The banking organizations, including the American Bankers Association and the Bank Policy Institute, argue that their comments 'will necessarily be more comprehensive, and therefore more useful to the agencies, if we have sufficient time to evaluate the proposed rules together and to evaluate each against the finalized OCC framework.' The GENIUS Act is slated for implementation by 2027, although it is not uncommon for federal agencies to grant extensions for complex rulemaking processes. The Treasury Department has not immediately responded to a request for comment on the banking industry's request. The same bankers are also engaged in a debate with the crypto industry regarding stablecoin regulation, which has already led to a delay in the Digital Asset Market Clarity Act and may potentially jeopardize its passage into law this year.