U.S. Banks Seek Delay in GENIUS Act Stablecoin Rules

TLDR

• U.S. banking groups asked the Treasury Department to extend comment periods on GENIUS Act stablecoin rule proposals.
• The associations requested at least 60 additional days after the OCC finalizes its supervisory framework.
• Bankers said the related rule proposals depend directly on the OCC’s final approach.
• The letter addressed rulemaking efforts at OFAC, FinCEN, and the FDIC.
• The GENIUS Act aims to establish a national stablecoin oversight framework before 2027.

U.S. banking groups have urged federal regulators to extend comment periods tied to stablecoin rules under the GENIUS Act. They argue that overlapping proposals require more review time before agencies finalize frameworks. The request centers on aligning rulemaking schedules across multiple banking regulators.

Banking Groups Call for More Time on GENIUS Act Rules

Several major bank trade associations submitted a letter to the U.S. Department of the Treasury and the Federal Deposit Insurance Corp. They asked regulators to extend three proposed rule comment periods linked to the GENIUS Act. They requested at least 60 additional days after the Office of the Comptroller of the Currency completes its framework.

The American Bankers Association and the Bank Policy Institute signed the letter with other organizations. They stated that all related proposals remain “directly contingent on the OCC’s final framework.” They argued that agencies should allow coordinated review before moving forward.

The Office of the Comptroller of the Currency is drafting standards for supervising stablecoin issuers. Bankers said the OCC’s final approach will shape related rules under development at other agencies. They stressed that agencies should not finalize separate rules without considering the OCC’s decisions.

The letter addressed rulemaking efforts at the Treasury’s Office of Foreign Assets Control and the Financial Crimes Enforcement Network. It also referenced a related proposal at the FDIC. The groups said these efforts together represent a “body of regulatory work of extraordinary scope and complexity.”

Bankers explained that they plan to provide detailed feedback on each proposal. However, they said agencies must first finalize the OCC’s supervisory structure. They wrote that their comments “will necessarily be more comprehensive” with more time.

Coordinated Oversight and Ongoing Stablecoin Debate

The GENIUS Act aims to establish a national framework for stablecoin oversight before 2027. Lawmakers designed the measure to coordinate federal supervision across banking and financial regulators. Agencies have begun drafting rules to meet the law’s timeline.

Federal agencies often extend comment windows for complex rule proposals. Banking groups cited that precedent in their request. They said regulators should synchronize review periods to avoid inconsistent standards.

At the same time, the same banking organizations remain engaged in discussions over the Digital Asset Market Clarity Act. That proposal seeks to define oversight roles for digital asset markets. Disagreements between banks and crypto industry participants have slowed its progress in Congress.

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