Banks Seek More Time on GENIUS Act Rules

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Banks are asking regulators to delay several GENIUS Act comment deadlines until after the Comptroller of the Currency (OCC) finalizes its main stablecoin framework. The request came in a joint April 21 letter from the American Bankers Association, Bank Policy Institute, Consumer Bankers Association and Independent Community Bankers of America to Treasury, the FDIC, FinCEN and OFAC.

The banks say they want a more orderly rollout because the latest proposals are too closely tied to the OCC framework to be reviewed effectively before the OCC’s rule is finalized.

The Banks Want the Timeline Tied to the OCC

The trade groups asked Treasury, the FDIC, FinCEN and OFAC to extend their comment periods to 60 days after the OCC issues a final rule implementing the GENIUS Act for entities under its jurisdiction. The banks say the proposals should be reviewed together.

That would delay feedback on three separate rulemakings now moving at the same time. Treasury’s proposal on how to determine whether a state regime is ‘substantially similar’ to the federal framework is open for comment until June 2. The FDIC’s proposal on standards for FDIC-supervised permitted payment stablecoin issuers and insured banks is open until June 9. The joint FinCEN-OFAC proposal on anti-money laundering and sanctions compliance is also open until June 9.

The Fight Is About Timing as Much as Substance

The banks’ argument is procedural, but it matters. Their letter says Treasury’s proposal directly relies on the OCC’s draft rule as a benchmark, the FDIC says it has tried to align with the OCC where relevant, and the FinCEN-OFAC proposal describes itself as only one piece of the wider GENIUS framework. In the banks’ view, that makes separate deadlines a poor fit for a regime that is supposed to work as one system.

Stablecoin Oversight Is Still Being Built

The OCC proposed its GENIUS rule in February, covering payment stablecoin issuance and related activities by entities under its supervision. The FDIC followed this month with a proposal covering reserve assets, redemptions, custodial requirements, pass-through insurance treatment for stablecoin reserves and the treatment of tokenized deposits. FinCEN and OFAC, both within Treasury, jointly proposed AML and sanctions rules on April 8.

For banks, the latest letter shows the debate has shifted toward the timing and implementation of the oversight framework. For crypto firms, that means the federal stablecoin framework is still moving ahead, but not without another push from the banking lobby to slow the process and shape the final rulebook.