The cryptocurrency sector is once again seeing bankers play a significant role in its key regulatory endeavors. This time, a coalition of bank trade associations has requested that the US Department of the Treasury extend the public consultation period for implementing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which was passed last year. In a letter sent to the Treasury Department and the Federal Deposit Insurance Corp, US bankers are asking for a 60-day extension for commenting on three different rule proposals under the GENIUS Act, following the completion of another rule effort by the Office of the Comptroller of the Currency (OCC).
The OCC's rule for regulating stablecoin issuers 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 at the FDIC. According to the bankers, all these efforts are 'directly contingent on the OCC's final framework' and represent a complex body of regulatory work.
The banking organizations, including the American Bankers Association and the Bank Policy Institute, argue that having sufficient time to evaluate the proposed rules and the finalized OCC framework will enable them to provide more comprehensive and useful comments to the agencies. The GENIUS Act is set to be implemented by 2027, although it is not uncommon for federal agencies to grant extensions for complex rules. The Treasury Department has not yet responded to a request for comment on the bank industry's request. Meanwhile, the same bankers are involved in a debate with the crypto industry over stablecoin regulation, which has already delayed the Digital Asset Market Clarity Act for months and may jeopardize its chances of becoming law this year.