finance
U.S. Banks Seek Delay in Genius Act Implementation as Agora Applies for Bank Charter
Major U.S. banks have asked regulators for extended public comment periods before fully implementing the Genius Act, which would require stablecoin issuers to operate as banks. Banking groups also want to delay the law's rollout. Meanwhile, crypto firm Agora has filed for a national trust bank charter and aims to expand services.
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U.S. banks have asked regulators for extended public comment periods before full implementation of the Genius Act, CoinDesk reported. Banking groups want regulators to delay the rollout of the Genius Act.
He called the Genius Act one of the most significant laws in banking history. Van Eck expects continued efforts to slow the Genius Act process over the next year as banks assess risks to their business models. He argued that banks' real concern is 'deposit flight' if stablecoin issuers can pass through rewards to users.
Traditional banks profit from the spread between near-zero deposit rates and higher returns at the Fed, van Eck said. Van Eck said a national regime for stablecoins would boost innovation and global dollar adoption. The Genius Act would require stablecoin issuers to operate as banks.
Agora filed for a national trust bank charter with the OCC last week. The firm aims for approval of its national trust bank charter by year-end 2026. A bank charter would allow Agora to issue stablecoins directly under federal oversight.
Van Eck said direct issuance of stablecoins could eliminate 'egregious fees' in fiat-to-crypto on/off ramps. Agora plans to expand beyond stablecoin issuance into custody, compliance, and infrastructure services.
