Banks Push for Delay in Implementing Stablecoin Oversight Under GENIUS Act

The cryptocurrency sector often finds itself at odds with bankers over regulatory matters, and now a coalition of bank trade associations is urging the US Department of the Treasury to prolong the public consultation period for the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, enacted last year. In a letter addressed to the Treasury Department and the Federal Deposit Insurance Corp, US bankers are requesting a 60-day extension for the comment period on three GENIUS Act rule proposals, following the conclusion of another rulemaking effort by the Office of the Comptroller of the Currency (OCC). The OCC's initiative to implement its stablecoin issuer policing rule has 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 by 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 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 federal agencies often grant extensions for complex rules. The Treasury Department has not responded to a request for comment on the bank industry's request. 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.