US banks push back on stablecoin rules as White House steps in

U.S. banks urge regulators to delay stablecoin rule comments for more coordination. The White House supports swift action, intensifying the debate over stablecoin regulation.

U.S. banking groups have expressed concerns about the rapid progress of stablecoin regulations by federal agencies. They argue that the fast pace makes it difficult to understand how new rules will interact with existing regulations. Several trade associations have formally asked agencies like the Treasury Department, FDIC, OFAC, and FinCEN to extend public comment periods for stablecoin rules under the GENIUS Act, requesting at least 60 more days after the OCC finalizes its framework. The groups believe that the proposals from these agencies are closely linked to the OCC’s pending framework. Reviewing them before the OCC’s process is complete could fragment the regulatory process and undermine consistency. Major banks also worry that the proposed rules might disadvantage traditional lenders and introduce systemic risk by letting non-bank entities issue stablecoins without equivalent oversight. The White House has intervened, instructing banking groups to stand down and signaling strong executive support for moving the legislation forward. This has intensified the debate over the future of stablecoin regulation in the U.S.