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Banks seek to slow down implementation of crypto's GENIUS Act on stablecoin oversight
TL;DR
A coalition of U.S. bank trade associations is requesting the Treasury Department to extend the comment period for the GENIUS Act on stablecoin oversight by at least 60 days. They argue that this extension is necessary to evaluate the proposals in conjunction with the OCC's final framework.
Key points
- Bank trade associations request extension for GENIUS Act comment period
- Extension sought for at least 60 days after OCC rule completion
- GENIUS Act aims for stablecoin oversight by 2027
Mentioned in this story
American Bankers AssociationBank Policy InstituteU.S. Department of the TreasuryFederal Deposit Insurance Corp.Office of the Comptroller of the CurrencyFinancial Crimes Enforcement NetworkOffice of Foreign Assets Control
The crypto industry is frequently finding bankers involved in its top-priority regulatory efforts, and this time, a coalition of bank trade associations has asked the U.S. Department of the Treasury to extend the window in which the public can weigh in on implementation of last year's Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
In a letter sent this week to the Treasury Department and the Federal Deposit Insurance Corp., bankers in the U.S. are asking that three different GENIUS Act rule proposals get extended comment periods, at least 60 days after another rule effort (at the Office of the Comptroller of the Currency) is finished. The OCC's push to implement its rule for policing stablecoin issuers is meaningful to the outcome of other rules being pursued at the Treasury's Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN), plus a related rulemaking at the FDIC.
All the efforts are "directly contingent on the OCC's final framework," the bankers contend. The collective efforts, in addition to regulatory proposals that haven't yet emerged from the Federal Reserve and other agencies, "represent a body of regulatory work of extraordinary scope and complexity."
The banking organizations, including the American Bankers Association and the Bank Policy Institute, said 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 meant to be in place by 2027, though it's not unusual for federal agencies to grant extensions of comment periods on complex rules. The Treasury Department didn't immediately respond to a request for comment on the bank industry's request.
The same bankers are also embroiled in a stablecoin-related debate with the crypto industry that's so far managed to delay the Digital Asset Market Clarity Act for months, and potentially jeopardize its potential for becoming law this year.
Read More: U.S. Treasury proposes demands that stablecoin firms be set to police bad transactions
Q&A
What is the GENIUS Act and its purpose?
The GENIUS Act aims to establish a regulatory framework for U.S. stablecoins, with implementation expected by 2027.
Why are banks requesting an extension for the GENIUS Act comment period?
Banks are seeking an extension to better evaluate the proposed rules in relation to the OCC's final framework, which they believe will enhance the quality of their feedback.
What are the implications of the OCC's rule for stablecoin issuers?
The OCC's rule is crucial as it impacts the regulatory landscape for stablecoin issuers and is interconnected with other regulatory efforts from agencies like the Treasury and FDIC.
