Banking associations in the United States have asked the Treasury Department to extend the public comment period for the implementation of the GENIUS Act, a law regulating stablecoins.
This week, they sent a letter to the Treasury Department and the Federal Deposit Insurance Corporation. Bankers want the deadlines for the three proposals under the GENIUS Act to be pushed back by at least 60 days after the Office of the Comptroller of the Currency completes its rulemaking.
In their view, the final position of the OCC will form the basis for all other decisions. Without it, it will be difficult to fully assess the new requirements.
The problem is that the rules from this agency overseeing stablecoin issuers could affect all other initiatives. OFAC, FinCEN, and FDIC are currently preparing their own versions.
Banks are openly saying that everything depends on the final position of the OCC. Until it is released, it is difficult to assess the other rules.
In addition, other regulators, including the Fed, will also get involved. As a result, the system could become too cumbersome and confusing.
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Banking organizations, including the American Bankers Association and the Bank Policy Institute, stated that their comments will be more complete and useful for regulators if they have enough time. This will allow them to consider all proposed rules as a whole and compare them with the final version of the requirements from the OCC.
The GENIUS Act is expected to take effect by 2027. For such complex initiatives, extending the comment period is considered standard practice. The U.S. Treasury Department has not yet commented on the banking sector’s request.
Meanwhile, banks continue to argue with representatives of the crypto industry over issues related to stablecoins. This conflict has already delayed the progress of the Digital Asset Market Clarity Act by several months and could jeopardize its passage this year.
