Banking Groups Demand Guardrails Before Stablecoin Panel Begins Work
By CU Today Staff —
WASHINGTON— The nation's largest banking trade groups are urging federal regulators to establish strict procedural safeguards before implementing the new stablecoin oversight framework created under the GENIUS Act, warning that a lack of transparency and consistency could create an uneven regulatory playing field for financial institutions.
In a joint letter sent Wednesday to the Treasury Department, Federal Reserve, FDIC, OCC and NCUA, the American Bankers Association, Bank Policy Institute, Consumer Bankers Association and Independent Community Bankers of America said the new Stablecoin Certification Review Committee should adopt formal rules before making any decisions on state, foreign or non-financial company stablecoin issuers. The groups argued the committee will wield significant authority over who can enter the payment stablecoin market and warned that weak procedures could lead to inconsistent decisions and allow some issuers to face less rigorous oversight than federally supervised banks.
Among their recommendations, the associations called for standardized application procedures, public notice-and-comment periods, published explanations for all decisions, defined voting and recusal rules, and formal consultation with both the OCC and NCUA before the committee approves state or foreign regulatory regimes. They also urged regulators to ensure the committee complies with federal transparency laws, including the Administrative Procedure Act, Freedom of Information Act and Government in the Sunshine Act.
The banking groups further recommended periodic reviews of certified state and foreign regulatory regimes and proposed that approvals allowing non-financial companies to issue payment stablecoins expire after three years unless affirmatively renewed. They argued those safeguards would help ensure stablecoin issuers continue meeting regulatory expectations as the federal framework evolves and protect confidence in the oversight system established by Congress under the GENIUS Act.
Originally reported by CU Today.