Banking associations in the U.S. have asked the Treasury to extend the public comment period for the implementation of the GENIUS Act, the stablecoin regulation law.
This week, they sent a letter to the Department of the Treasury and the Federal Deposit Insurance Corporation. Bankers want the deadlines for three proposals under the GENIUS Act pushed back at least 60 days after the Office of the Comptroller of the Currency wraps up its rulemaking.
In their view, the final OCC position will be the foundation for the other decisions. Without it, fully assessing the new requirements will be difficult.
The issue is that the rules from this agency regarding stablecoin issuers could impact all other initiatives. OFAC, FinCEN, and FDIC are currently preparing their versions.
Banks are straight up saying that everything hinges on the final OCC position. Until that's settled, it's tough to evaluate the other rules.
On top of that, other regulators, including the Fed, will get involved. In the end, this could lead to an overly cumbersome and confusing system.
Banking organizations, including the American Bankers Association and Bank Policy Institute, have stated that their comments would be more comprehensive and useful for regulators if they have enough time. This will allow them to review all proposed rules collectively and compare them with the final version of the requirements from the OCC.
The GENIUS Act is expected to come into effect by 2027. However, for such complex initiatives, extending discussion periods is considered the norm. The U.S. Treasury has yet to comment on the banking sector's request.
Meanwhile, banks are still at odds with crypto industry representatives 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.
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