TLDR
US banking groups are trying to slow rollout of the GENIUS Act, the new US stablecoin law, by asking regulators for more time.
- The American Bankers Association is asking Treasury, FDIC, FinCEN and OFAC for at least a 60?day extension on stablecoin rule comment deadlines tied to the GENIUS Act.
- The delay push is framed as a need for coordination with the OCCs still?pending framework, but it also reflects concern that regulated stablecoins could drain bank deposits and fee income.
- For crypto users, this means more regulatory uncertainty on US stablecoins in 2026, with timelines hinging on the OCCs final rule and parallel Senate action on the CLARITY Act.
Deep Dive
1. What Banks Are Asking For
The American Bankers Association (ABA) and other banking groups have formally asked US regulators to extend public comment periods on multiple GENIUS Act stablecoin rules by 60 days or more after the Office of the Comptroller of the Currency (OCC) finalizes its framework. They argue meaningful feedback is not possible until the OCCs rule is known and aligned across agencies, and want all rules reviewed together rather than on staggered timelines. Reports note this could delay activation of the GENIUS Act stablecoin regime by several months, since the law only fully kicks in after final regulations and a 120?day implementation window or an 18?month backstop period, whichever comes first.
The OCC has already issued a proposed rule outlining oversight of payment stablecoin issuers and custody services under the GENIUS Act, but AML and sanctions details are being developed separately in coordination with Treasury agencies. This multi?agency structure is one reason banks say timelines are too compressed.
2. Why Banks Want More Time
Publicly, banks say they need time to align internal controls, capital planning, and compliance systems across overlapping rules on reserves, disclosures, AML and sanctions for any institution issuing or handling regulated stablecoins. Industry letters emphasize the complexity of reconciling state regimes, FDIC treatment of reserves, and FinCEN/OFAC expectations before committing to definitive comments.
At the same time, commentary highlights a strategic motive. Regulated dollar stablecoins must hold full reserves, often in Treasuries, creating yield that could be shared with users and competing with low yielding bank deposits. Banking groups are also lobbying to tighten the separate CLARITY Act so that third?party stablecoin rewards are curtailed, which they view as a threat to deposit?funded lending. This combination of regulatory delay and yield restrictions would blunt the competitive edge of stablecoins in payments and savings.
Banks are trying to shape both the timing and design of the rules to limit how quickly yield?bearing, regulated stablecoins can become a mainstream alternative to bank accounts.
3. Impact On Crypto And What To Watch
For stablecoin issuers and users, a successful delay would stretch the period of partial clarity: the GENIUS Act exists as law, but key operational, AML, and yield details remain unsettled. That can slow large US institutions from launching or scaling payment stablecoins, while offshore and non?US frameworks continue to advance.
Key near term signals are:
- Whether the OCC finalizes its rule without major concessions to bank lobbyists.
- How Treasury, FDIC, FinCEN and OFAC respond to the 60?day extension request and whether they sync their timelines.
- Whether the Senate Banking Committee moves the CLARITY Act and how it ultimately treats stablecoin rewards and DeFi.
If regulators grant more time but keep the core design of the GENIUS Act intact, the medium?term setup still favors institutional, dollar?backed stablecoins, but with a slower and more politically contested rollout.
Conclusion
US banks are not trying to kill the GENIUS Act so much as delay and reshape it, especially on yields and compliance details that affect their core business. For crypto users and builders, that means a longer period of uncertainty around US?domiciled stablecoins and banking integration, with the real inflection coming when the OCC framework is final and the Senate either advances or stalls the CLARITY Act.
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