Banking Industry Seeks Delay in GENIUS Act Rulemaking Amid Stablecoin Framework Uncertainty

Major US banking trade groups have asked the Treasury Department and FDIC to suspend three GENIUS Act rulemaking comment periods until the OCC finalizes its primary stablecoin framework. The American Bankers Association and the Bank Policy Institute argued that the proposals are structurally interdependent, requesting a 60-day wait after the OCC finishes its framework before running parallel comment periods.

Agora, a stablecoin startup, has filed for a national trust bank charter to establish a federal presence and issue stablecoins directly under federal oversight. The company's CEO, Nick van Eck, stated that a federal charter would eliminate 'egregious fees' in fiat-to-crypto conversion infrastructure and allow Agora to expand into custody, compliance, and payments.

The GENIUS Act is scheduled to take effect no later than January 18, 2027. The banking groups' request to pause comment periods could delay the GENIUS Act's activation by several months, giving traditional lenders more time to assess the competitive threat from nonbank stablecoin issuers before the rules are finalized.