Banks seek to slow down implementation of crypto’s GENIUS Act on stablecoin oversight
U.S. banking groups argued that a number of federal agencies are moving quickly on stablecoin regulations, making it hard to understand how rules will interact.
Banks seek to slow down implementation of crypto’s GENIUS Act on stablecoin oversight
U.S. banking groups argued that a number of federal agencies are moving quickly on stablecoin regulations, making it hard to understand how rules will interact.
Banks have asked the U.S. Treasury Department to temporarily hit the brakes on GENIUS Act rulemaking. (Jesse Hamilton/CoinDesk)
What to know:
The U.S. banking industry is asking for a pause on GENIUS Act comment periods for several stablecoin regulations until the Office of the Comptroller of the Currency finishes its effort.
Several bank groups argued that the efforts from the Treasury Department and Federal Deposit Insurance Corp. are dependent on an OCC rule that’s not done, yet.
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.
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