Banking Groups Push for Extended Comment Period on U.S. Stablecoin Rules Under GENIUS Act

U.S. banking organizations are stepping deeper into the evolving crypto regulation landscape, urging federal agencies to allow more time for public feedback on key stablecoin rules tied to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. The request highlights growing concerns over the complexity and coordination required to implement comprehensive digital asset regulations in the United States.

In a recent letter addressed to the U.S. Department of the Treasury and the Federal Deposit Insurance Corporation (FDIC), major banking trade groups, including the American Bankers Association and the Bank Policy Institute, called for an extension of the comment periods for three proposed rules under the GENIUS Act. Specifically, they are requesting at least a 60-day extension after the Office of the Comptroller of the Currency (OCC) finalizes its own stablecoin regulatory framework.

According to the banking coalition, the OCC’s forthcoming rule is critical because it will shape how other agencies—such as the Treasury’s Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN)—develop and enforce their own stablecoin-related regulations. The FDIC is also working on a parallel rulemaking effort, further adding to the regulatory complexity.

The banking groups emphasized that these interconnected rulemakings represent a “significant and highly complex” regulatory undertaking. They argue that additional time is essential to properly assess how each rule interacts with the others and to provide meaningful, well-informed feedback. Without sufficient time, they warn, the effectiveness and clarity of the final regulations could be compromised.

The GENIUS Act, expected to be fully implemented by 2027, is a cornerstone of U.S. stablecoin policy aimed at strengthening oversight and fostering innovation in digital assets. While extensions for public comment periods are common for complex regulations, it remains unclear whether federal agencies will grant this request.

Meanwhile, tensions between traditional banking institutions and the crypto industry continue to influence broader legislative efforts, including delays in the Digital Asset Market Clarity Act. These ongoing debates underscore the challenges regulators face in balancing innovation, financial stability, and consumer protection in the rapidly evolving crypto ecosystem.