GENIUS Act stablecoin rules face delay as ABA urges more time

The American Bankers Association has asked regulators to extend the comment period tied to GENIUS Act stablecoin rules.

The American Bankers Association, in a letter sent Tuesday, urged regulators—including the US Department of the Treasury, Federal Deposit Insurance Corporation, Financial Crimes Enforcement Network, and the Office of Foreign Assets Control—to extend the public comment window.

The request is tied to the implementation of the GENIUS Act.

Calling attention to regulatory sequencing, the group requested an additional 60 days to review and respond after the Office of the Comptroller of the Currency publishes its final rule. 

Agencies such as the FDIC have already indicated that their proposals are closely aligned with the OCC’s approach, which has left stakeholders waiting for a clearer baseline before offering detailed feedback.

“The FDIC has stated explicitly… that it ‘has endeavored, in many areas, to align this proposed rule with the OCC's proposed rule,’” the letter said.

“Meaningful comment on that question is impossible without knowing the final content of the OCC’s rule.”

Regulatory coordination sits at the center of the request.

FDIC guidance itself invited feedback on how federal stablecoin regulators should align their final frameworks, a process the ABA argues cannot be completed without the OCC’s finalised position. 

That dependency, according to the group, limits the usefulness of the current consultation timeline.

Implementation timeline faces potential delay

Signed into law in July 2025 by US President Donald Trump, the GENIUS Act shifted responsibility to federal agencies to build out operational rules covering payment stablecoin issuers. 

The law allows the framework to take effect either 120 days after final regulations are issued or 18 months after enactment, whichever comes first.

Regulatory delays at this stage could push that timeline further out.

With multiple agencies drafting overlapping rules, the absence of a finalized OCC framework has become a bottleneck, particularly for areas such as reserve requirements, compliance standards, and supervisory alignment.

Banking groups have also been active on a parallel front.

Debate around stablecoin yield has resurfaced as lawmakers weigh market structure reforms under the CLARITY Act, a bill that cleared the House but remains under discussion in the Senate.

Stablecoin yield debate overlaps with Senate timeline

Recent policy exchanges have drawn the ABA into direct disagreement with White House economic analysis, which suggested that restricting stablecoin yield would have only a limited effect on traditional banks. 

Industry participants argue the impact could be more meaningful, particularly if yield-bearing stablecoins begin to compete more directly with deposit products.

Movement on the CLARITY Act has yet to materialise. As of midweek, no agreement had been announced to advance the bill in the Senate. 

North Carolina Senator Thom Tillis has reportedly recommended that Banking Committee Chair Tim Scott schedule a markup in May, a step that could delay a full chamber vote.

Legislative timing now intersects with regulatory pacing.

While agencies continue drafting the rules needed to operationalise the GENIUS Act, lawmakers remain divided on key aspects of crypto market structure, leaving both tracks moving forward, but without firm deadlines.