Banks seek delay on US stablecoin rules

TLDR

US banking groups are asking U.S. regulators and lawmakers to slow the rollout of new federal stablecoin rules, especially around yield-bearing products.

1. The American Bankers Association wants a 60 day pause on GENIUS Act stablecoin rules so banks can study compliance impacts and submit more comments.
2. Banks are also lobbying the Senate over the CLARITY Acts limits on stablecoin rewards, arguing high yields could drain trillions from deposits, while the White House disputes that risk.
3. For crypto users, this is mostly about timing: core regulation is still coming, but the fight over yield and bank roles will shape which stablecoins thrive and where innovation goes.

Deep Dive

1. What Banks Are Asking For

The American Bankers Association (ABA) has formally requested a 60 day delay before new GENIUS Act stablecoin rules fully take effect, saying banks need more time to assess legal and operational impacts and provide public input on implementation. That request would push key compliance dates into mid 2026, giving banks longer to adjust how they custody and process stablecoin transactions under the new federal framework for issuers.

Separately, regional and national banking groups are pressing the Senate Banking Committee to slow the CLARITY Act, a broader crypto market structure bill that also touches stablecoin rewards. Reports describe a targeted pressure campaign on Senator Thom Tilliss office from banks unhappy with the bills current stablecoin yield language, which bans interest-like rewards on stablecoin balances and any activity economically or functionally equivalent to interest.

2. Why This Matters For Stablecoins And Crypto

For issuers and large stablecoins, the GENIUS Act and CLARITY Act are not going away; at most, banks may win a short timing extension and tweaks to yield rules. A delay would give stablecoin issuers more breathing room to align reserves, audits, and licensing with the GENIUS standards, and it gives Wall Street products like Morgan Stanleys new Stablecoin Reserves Portfolio extra time to attract issuer assets under compliant structures.

The most contentious piece is yield. Banking groups warn that generous stablecoin rewards could pull large sums out of insured deposits, while a White House economic analysis cited in multiple reports finds that banning yield would barely move bank lending, but would meaningfully reduce consumer benefit from stablecoins. Crypto firms argue that if the U.S. overrestricts yield and slows rulemaking, capital and innovation will keep shifting to clearer jurisdictions such as the EU under MiCA or hubs like Dubai and Singapore.

3. What To Watch Next

Near term, the key signals are procedural, not price based. First, watch whether regulators grant the ABAs requested 60 day pause on GENIUS Act rule implementation; approval would confirm more time for banks and issuers to adapt, while denial would lock in a tighter compliance runway.

Second, watch the Senate Banking Committees calendar for a CLARITY Act markup date. Senators and industry groups frame late spring as a last realistic window, with prediction markets assigning only middling odds that the bill becomes law this year as bank pushback intensifies. If that window slips, comprehensive U.S. crypto and stablecoin legislation could be delayed for years, further entrenching non U.S. frameworks as the global reference point.

Conclusion

Banks seeking a delay are not trying to stop U.S. stablecoin rules so much as reshape their pace and the treatment of yield, which directly affects their own business models. For crypto users and issuers, the practical impact is about how quickly GENIUS style requirements bite, whether yield-bearing stablecoins remain viable under U.S. law, and whether regulatory clarity arrives in time to keep major stablecoin and tokenization activity onshore rather than migrating to more predictable regimes abroad.