The American Bankers Association has called for more time on stablecoin rulemaking tied to the GENIUS Act, citing gaps in regulatory coordination.
Summary
- American Bankers Association has asked regulators to extend the comment period on GENIUS Act stablecoin rules, citing lack of clarity from the OCC.
- Regulatory coordination remains unresolved as agencies align proposals, with the absence of a final OCC rule limiting meaningful industry feedback.
The American Bankers Association, in a letter sent Tuesday, urged the U.S. Department of the Treasury, Federal Deposit Insurance Corporation, Financial Crimes Enforcement Network, and Office of Foreign Assets Control to extend the public comment period linked to the law’s implementation.
Looking at how the rules are being drafted across agencies, the group asked for an additional 60 days after the Office of the Comptroller of the Currency publishes its final framework. Much of the current consultation process, it argued, depends on a rule that is not yet in place.
“The FDIC has stated explicitly… that it ‘has endeavored, in many areas, to align this proposed rule with the OCC’s proposed rule,’” the letter said. “Meaningful comment on that question is impossible without knowing the final content of the OCC’s rule.”
That dependency has started to slow engagement. FDIC itself has sought input on how federal regulators should align their approaches, yet industry participants remain unable to respond in detail without a finalized OCC baseline. Coordination, rather than substance, has become the sticking point at this stage of the process.
Implementation timeline under pressure
Signed into law in July 2025 by Donald Trump, the GENIUS Act assigns federal agencies the task of building out rules for payment stablecoin issuers. The framework is set to take effect either 120 days after final regulations are issued or 18 months after enactment, whichever comes first.
Delays in rulemaking could push that timeline further out. Multiple agencies are working on overlapping areas, including reserve backing, compliance obligations, and supervisory standards. Absence of a finalized OCC rule has turned into a bottleneck, leaving key technical details unresolved.
Reserve requirements and enforcement mechanisms remain under discussion. FinCEN proposals, for instance, have outlined obligations for anti-money laundering programs and sanctions compliance, including the ability to block or freeze transactions when required. Those measures sit alongside FDIC considerations on how reserves should be held and disclosed, yet alignment across agencies is still evolving.
Stablecoin yield debate intersects with Senate process
Away from regulatory drafting, a parallel debate has been unfolding in Congress. Stablecoin yield has emerged as a point of contention under the CLARITY Act, which cleared the House but has yet to move forward in the Senate.
Recent exchanges have placed banking groups at odds with White House economic analysis. While administration estimates suggested that limiting yield on stablecoins would have only a modest effect on bank lending, industry participants have argued the impact could be more significant if such products begin competing directly with deposits.
Lawmakers have not yet reached an agreement on how to proceed. Thom Tillis has reportedly suggested that Tim Scott schedule a committee markup in May, a move that could delay a full Senate vote.
Legislative timing now runs alongside regulatory work. Agencies continue drafting the rules required to operationalize the GENIUS Act, while Congress remains divided on key elements of market structure. Both tracks are moving forward, though neither has settled on a clear endpoint.
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