The American Bankers Association is asking for an extension on the rules for stablecoins, referencing the GENIUS Act, because different regulatory bodies aren’t fully aligned on the issue.
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.
On Tuesday, the American Bankers Association asked the Treasury Department, the FDIC, FinCEN, and OFAC to give the public more time to provide feedback on how to put a new law into effect.
The group requested an extra 60 days for review, starting after the Office of the Comptroller of the Currency releases its final guidelines. They explained that the current discussions rely heavily on a rule that hasn’t been finalized yet.
According to a letter, the FDIC has made a clear effort to match its proposed rule with a similar one from the OCC. However, providing useful feedback on this alignment is impossible until the final version of the OCC’s rule is known.
Reliance on this system is now hindering user activity. The FDIC is asking for feedback on how federal regulators can work together, but industry professionals can’t provide specific answers until the OCC establishes clear standards. Right now, discussions are focused on *how* to collaborate, rather than actually addressing the issues themselves.
Implementation timeline under pressure
The GENIUS Act, signed into law by Donald Trump in July 2025, directs federal agencies to create rules for companies that issue payment stablecoins. These rules will go into effect either 120 days after they are finalized, or 18 months after the law was passed – whichever happens sooner.
If regulations aren’t finalized soon, the project could be delayed even more. Several agencies are currently addressing similar issues, such as requirements for reserves, how companies must comply with rules, and how banks are overseen. The lack of a final rule from the OCC is now holding things up, preventing important details from being worked out.
Details about reserve requirements and how they’ll be enforced are still being worked out. For example, the Financial Crimes Enforcement Network (FinCEN) has proposed rules requiring businesses to prevent money laundering and follow sanctions, giving them the power to stop or hold transactions when necessary. These rules are being considered alongside the Federal Deposit Insurance Corporation’s (FDIC) ideas about how reserves should be managed and reported, but different agencies haven’t fully agreed on a unified approach yet.
Stablecoin yield debate intersects with Senate process
Besides the work on official rules, Congress is also discussing stablecoins. A key issue in the CLARITY Act – which passed the House but is stalled in the Senate – is how much interest, or ‘yield,’ stablecoins should offer.
Disagreements have emerged between banks and the White House regarding the potential impact of regulating stablecoins. The administration believes limiting the returns on stablecoins wouldn’t greatly affect bank lending, but banking groups argue that if stablecoins become a strong alternative to traditional deposits, the effect could be much larger.
Legislators haven’t come to a consensus on the next steps. Senator Thom Tillis has apparently proposed that Tim Scott organize a committee meeting in May, which might postpone a vote by the entire Senate.
Lawmaking and regulatory efforts are happening at the same time. Government agencies are still writing the rules needed to put the GENIUS Act into effect, and Congress is still debating important aspects of how the market should be structured. Both processes are progressing, but it’s unclear when they will be finished.
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2026-04-23 09:37